Ifdirecttaxesuponthewagesoflabourhavenotalwaysoccasionedaproportionableriseinthosewages，itisbecausetheyhavegenerallyoccasionedaconsiderablefallinthedemandforlabour。Thedeclensionofindustry，thedecreaseofemploymentforthepoor，thediminutionoftheannualproduceofthelandandlabourofthecountry，havegenerallybeentheeffectsofsuchtaxes。Inconsequenceofthem，however，thepriceoflabourmustalwaysbehigherthanitotherwisewouldhavebeenintheactualstateofthedemand:andthisenhancementofprice，togetherwiththeprofitofthosewhoadvanceit，mustalwaysbefinallypaidbythelandlordsandconsumers。
Ataxuponthewagesofcountrylabourdoesnotraisethepriceoftherudeproduceoflandinproportiontothetax，forthesamereasonthatataxuponthefarmer’sprofitdoesnotraisethatpriceinthatproportion。
Absurdanddestructiveassuchtaxesare，however，theytakeplaceinmanycountries。InFrancethatpartofthetaillewhichischargedupontheindustryofworkmenandday—labourersincountryvillagesisproperlyataxofthiskind。Theirwagesarecomputedaccordingtothecommonrateofthedistrictinwhichtheyreside，andthattheymaybeaslittleliableaspossibletoanyovercharge，theiryearlygainsareestimatedatnomorethantwohundredworkingdaysintheyear。Thetaxofeachindividualisvariedfromyeartoyearaccordingtodifferentcircumstances，ofwhichthecollectororthecommissarywhomtheintendantappointstoassisthimarethejudges。InBohemia，inconsequenceofthealterationinthesystemoffinanceswhichwasbegunin1748，averyheavytaxisimposedupontheindustryofartificers。Theyaredividedintofourclasses。Thehighestclasspayahundredflorinsayearwhich，attwo—and—twentypencehalfpennyaflorin，amountstoL97s。6d。Thesecondclassaretaxedatseventy;thethirdatfifty;andthefourth，comprehendingartificersinvillages，andthelowestclassofthoseintowns，attwenty—fiveflorins。
Therecompenseofingeniousartistsandofmenofliberalprofessions，Ihaveendeavouredtoshowinthefirstbook，necessarilykeepsacertainproportiontotheemolumentsofinferiortrades。Ataxuponthisrecompense，therefore，couldhavenoothereffectthantoraiseitsomewhathigherthaninproportiontothetax。Ifitdidnotriseinthismanner，theingeniousartsandtheliberalprofessions，beingnolongeruponalevelwithothertrades，wouldbesomuchdesertedthattheywouldsoonreturntothatlevel。
Theemolumentsofofficesarenot，likethoseoftradesandprofessions，regulatedbythefreecompetitionofthemarket，anddonot，therefore，alwaysbearajustproportiontowhatthenatureoftheemploymentrequires。Theyare，perhaps，inmostcountries，higherthanitrequires;thepersonswhohavetheadministrationofgovernmentbeinggenerallydisposedtorewardboththemselvesandtheirimmediatedependantsrathermorethanenough。Theemolumentsofoffices，therefore，caninmostcasesverywellbeartobetaxed。Thepersons，besides，whoenjoypublicoffices，especiallythemorelucrative，areinallcountriestheobjectsofgeneralenvy，andataxupontheiremoluments，eventhoughitshouldbesomewhathigherthanuponanyothersortofrevenue，isalwaysaverypopulartax。InEngland，forexample，whenbytheland—taxeveryothersortofrevenuewassupposedtobeassessedatfourshillingsinthepound，itwasverypopulartolayarealtaxoffiveshillingsandsixpenceinthepounduponthesalariesofofficeswhichexceededahundredpoundsayear，thepensionsoftheyoungerbranchesoftheroyalfamily，thepayoftheofficersofthearmyandnavy，andafewotherslessobnoxioustoenvyexcepted。ThereareinEnglandnootherdirecttaxesuponthewagesoflabour。