ThecantonofUnterwaldinSwitzerlandisfrequentlyravagedbystormsandinundations，andistherebyexposedtoextraordinaryexpenses。Uponsuchoccasionsthepeopleassemble，andeveryoneissaidtodeclarewiththegreatestfranknesswhatheisworthinordertobetaxedaccordingly。AtZurichthelawordersthat，incasesofnecessity，everyoneshouldbetaxedinproportiontohisrevenue—theamountofwhichheisobligedtodeclareuponoath。Theyhavenosuspicion，itissaid，thatanyoftheirfellow—citizenswilldeceivethem。AtBaseltheprincipalrevenueofthestatearisesfromasmallcustomupongoodsexported。Allthecitizensmakeoaththattheywillpayeverythreemonthsallthetaxesimposedbythelaw。Allmerchantsandevenallinnkeepersaretrustedwithkeepingthemselvestheaccountofthegoodswhichtheyselleitherwithinorwithouttheterritory。Attheendofeverythreemonthstheysendthisaccounttothetreasurerwiththeamountofthetaxcomputedatthebottomofit。Itisnotsuspectedthattherevenuesuffersbythisconfidence。
Toobligeeverycitizentodeclarepubliclyuponoaththeamountofhisfortunemustnot，itseems，inthoseSwisscantonsbereckonedahardship。AtHamburgitwouldbereckonedthegreatest。Merchantsengagedinthehazardousprotectsoftradealltrembleatthethoughtsofbeingobligedatalltoexposetherealstateoftheircircumstances。Theruinoftheircreditandthemiscarriageoftheirprojects，theyforesee，wouldtoooftenbetheconsequence。Asoberandparsimoniouspeople，whoarestrangerstoallsuchprojects，donotfeelthattheyhaveoccasionforanysuchconcealment。
InHolland，soonaftertheexaltationofthelatePrinceofOrangetothestadtholdership，ataxoftwopercent，orthefiftiethpenny，asitwascalled，wasimposeduponthewholesubstanceofeverycitizen。EverycitizenassessedhimselfandpaidhistaxinthesamemannerasatHamburg，anditwasingeneralsupposedtohavebeenpaidwithgreatfidelity。Thepeoplehadatthattimethegreatestaffectionfortheirnewgovernment，whichtheyhadjustestablishedbyageneralinsurrection。Thetaxwastobepaidbutonce，inordertorelievethestateinaparticularexigency。Itwas，indeed，tooheavytobepermanent。Inacountrywherethemarketrateofinterestseldomexceedsthreepercent，ataxoftwopercentamountstothirteenshillingsandfourpenceinthepounduponthehighestnetrevenuewhichiscommonlydrawnfromstock。Itisataxwhichveryfewpeoplecouldpaywithoutencroachingmoreorlessupontheircapitals。Inaparticularexigencythepeoplemay，fromgreatpubliczeal，makeagreateffort，andgiveupevenapartoftheircapitalinordertorelievethestate。Butitisimpossiblethattheyshouldcontinuetodosoforanyconsiderabletime;andiftheydid，thetaxwouldruinthemsocompletelyastorenderthemaltogetherincapableofsupportingthestate。
ThetaxuponstockimposedbytheLand—taxBillinEngland，thoughitisproportionedtothecapital，isnotintendedtodiminishortakeawayanypartofthatcapital。Itismeantonlytobeataxupontheinterestofmoneyproportionedtothatupontherentofland，sothatwhenthelatterisatfourshillingsinthepound，theformermaybeatfourshillingsinthepoundtoo。
ThetaxatHamburgandthestillmoremoderatetaxofUnterwaldandZuricharemeant，inthesamemanner，tobetaxes，notuponthecapital，butupontheinterestornetrevenueofstock。ThatofHollandwasmeanttobeataxuponthecapital。
TaxesuponasProfitofparticularEmploymentsInsomecountriesextraordinarytaxesareimposedupontheprofitsofstock，sometimeswhenemployedinparticularbranchesoftrade，andsometimeswhenemployedinagriculture。
OftheformerkindareinEnglandthetaxuponhawkersandpedlars，thatuponhackneycoachesandchairs，andthatwhichthekeepersofale—housespayforalicencetoretailaleandspirituousliquors。Duringthelatewar，anothertaxofthesamekindwasproposeduponshops。Thewarhavingbeenundertaken，itwassaid，indefenceofthetradeofthecountry，themerchants，whoweretoprofitbyit，oughttocontributetowardsthesupportofit。
Atax，however，upontheprofitsofstockemployedinanyparticularbranchoftradecanneverfallfinallyuponthedealers（whomustinallordinarycaseshavetheirreasonableprofit，andwherethecompetitionisfreecanseldomhavemorethanthatprofit），butalwaysupontheconsumers，whomustbeobligedtopayinthepriceofthegoodsthetaxwhichthedealeradvances;andgenerallywithsomeovercharge。
Ataxofthiskindwhenitisproportionedtothetradeofthedealerisfinallypaidbytheconsumer，andoccasionsnooppressiontothedealer。Whenitisnotsoproportioned，butisthesameuponalldealers，thoughinthiscase，too，itisfinallypaidbytheconsumer，yetitfavoursthegreat，andoccasionssomeoppressiontothesmalldealer。Thetaxoffiveshillingsaweekuponeveryhackneycoach，andthatoftenshillingsayearuponeveryhackneychair，sofarasitisadvancedbythedifferentkeepersofsuchcoachesandchairs，isexactlyenoughproportionedtotheextentoftheirrespectivedealings。Itneitherfavoursthegreat，noroppressesthesmallerdealer。Thetaxoftwentyshillingsayearforalicencetosellale;offortyshillingsforalicencetosellspirituousliquors;
andoffortyshillingsmoreforalicencetosellwine，beingthesameuponallretailers，mustnecessarilygivesomeadvantagetothegreat，andoccasionsomeoppressiontothesmalldealers。Theformermustfinditmoreeasytogetbackthetaxinthepriceoftheirgoodsthanthelatter。Themoderationofthetax，however，rendersthisinequalityoflessimportance，anditmaytomanypeopleappearnotimpropertogivesomediscouragementtothemultiplicationoflittleale—houses。Thetaxuponshops，itwasintended，shouldbethesameuponallshops。Itcouldnotwellhavebeenotherwise。Itwouldhavebeenimpossibletoproportionwithtolerableexactnessthetaxuponashoptotheextentofthetradecarriedoninitwithoutsuchaninquisitionaswouldhavebeenaltogetherinsupportableinafreecountry。Ifthetaxhadbeenconsiderable，itwouldhaveoppressedthesmall，andforcedalmostthewholeretailtradeintothehandsofthegreatdealers。Thecompetitionoftheformerbeingtakenaway，thelatterwouldhaveenjoyedamonopolyofthetrade，andlikeallothermonopolistswouldsoonhavecombinedtoraisetheirprofitsmuchbeyondwhatwasnecessaryforthepaymentofthetax。Thefinalpayment，insteadoffallingupontheshopkeeper，wouldhavefallenupontheconsumer，withaconsiderableoverchargetotheprofitoftheshopkeeper。Forthesereasonstheprojectofataxuponshopswaslaidaside，andintheroomofitwassubstitutedthesubsidy，1759。
WhatinFranceiscalledthepersonaltailleis，perhaps，themostimportanttaxupontheprofitsofstockemployedinagriculturethatisleviedinanypartofEurope。
InthedisorderlystateofEuropeduringtheprevalenceofthefeudalgovernment，thesovereignwasobligedtocontenthimselfwithtaxingthosewhoweretooweaktorefusetopaytaxes。Thegreatlords，thoughwillingtoassisthimuponparticularemergencies，refusedtosubjectthemselvestoanyconstanttax，andhewasnotstrongenoughtoforcethem。TheoccupiersoflandalloverEuropewere，thegreaterpartofthem，originallybondmen。ThroughthegreaterpartofEuropetheyweregraduallyemancipated。Someofthemacquiredthepropertyoflandedestateswhichtheyheldbysomebaseorignobletenure，sometimesundertheking，andsometimesundersomeothergreatlord，liketheancientcopy—holdersofEngland。Otherswithoutacquiringtheproperty，obtainedleasesfortermsofyearsofthelandswhichtheyoccupiedundertheirlord，andthusbecamelessdependentuponhim。Thegreatlordsseemtohavebeheldthedegreeofprosperityandindependencywhichthisinferiororderofmenhadthuscometoenjoywithamalignantandcontemptuousindignation，andwillinglyconsentedthatthesovereignshouldtaxthem。Insomecountriesthistaxwasconfinedtothelandswhichwereheldinpropertybyanignobletenure;and，inthiscase，thetaillewassaidtobereal。Theland—taxestablishedbythelateKingofSardinia，andthetailleintheprovincesofLanguedoc，Provence，Dauphine，andBrittany，inthegeneralityofMontauban，andintheelectionsofAgenandComdom，aswellasinsomeotherdistrictsofFrance，aretaxesuponlandsheldinpropertybyanignobletenure。Inothercountriesthetaxwaslaiduponthesupposedprofitsofallthosewhoheldinfarmorleaselandsbelongingtootherpeople，whatevermightbethetenurebywhichtheproprietorheldthem;andinthiscasethetaillewassaidtobepersonal。InthegreaterpartofthoseprovincesofFrancewhicharecalledtheCountriesofElectionsthetailleisofthiskind。Therealtaille，asitisimposedonlyuponapartofthelandsofthecountry，isnecessarilyanunequal，butitisnotalwaysanarbitrarytax，thoughitissouponsomeoccasions。Thepersonaltaille，asitisintendedtobeproportionedtotheprofitsofacertainclassofpeoplewhichcanonlybeguessedat，isnecessarilybotharbitraryandunequal。
InFrancethepersonaltailleatpresent（1775）annuallyimposeduponthetwentygeneralitiescalledtheCountriesofElectionsamountsto40，107，239livres，16sous。Theproportioninwhichthissumisassesseduponthosedifferentprovincesvariesfromyeartoyearaccordingtothereportswhicharemadetotheking’scouncilconcerningthegoodnessorbadnessofthecrops，aswellasothercircumstanceswhichmayeitherincreaseordiminishtheirrespectiveabilitiestopay。Eachgeneralityitdividedintoacertainnumberofelections，andtheproportioninwhichthesumimposeduponthewholegeneralityisdividedamongthosedifferentelectionsvarieslikewisefromyeartoyearaccordingtothereportsmadetothecouncilconcerningtheirrespectiveabilities。Itseemsimpossiblethatthecouncil，withthebestintentions，caneverproportionwithtolerableexactnesseitherofthosetwoassessmentstotherealabilitiesoftheprovinceordistrictuponwhichtheyarerespectivelylaid。
Ignoranceandmisinformationmustalways，moreorless，misleadthemostuprightcouncil。Theproportionwhicheachparishoughttosupportofwhatisassesseduponthewholeelection，andthatwhicheachindividualoughttosupportofwhatisassesseduponhisparticularparish，arebothinthesamemannervaried，fromyeartoyear，accordingascircumstancesaresupposedtorequire。
Thesecircumstancesarejudgedof，intheonecase，bytheofficersoftheelection，intheotherbythoseoftheparish，andboththeoneandtheotherare，moreorless，underthedirectionandinfluenceoftheintendant。Notonlyignoranceandmisinformation，butfriendship，partyanimosity，andprivateresentmentaresaidfrequentlytomisleadsuchassessors。Nomansubjecttosuchatax，itisevident，caneverbecertain，beforeheisassessed，ofwhatheistopay。Hecannotevenbecertainafterheisassessed。Ifanypersonhasbeentaxedwhooughttohavebeenexempted，orifanypersonhasbeentaxedbeyondhisproportion，thoughbothmustpayinthemeantime，yetiftheycomplain，andmakegoodtheircomplaints，thewholeparishisreimposednextyearinordertoreimbursethem。Ifanyofthecontributorsbecomebankruptorinsolvent，thecollectorisobligedtoadvancehistax，andthewholeparishisreimposednextyearinordertoreimbursethecollector。Ifthecollectorhimselfshouldbecomebankrupt，theparishwhichelectshimmustanswerforhisconducttothereceivergeneraloftheelection。
But，asitmightbetroublesomeforthereceivertoprosecutethewholeparish，hetakesathischoicefiveorsixoftherichestcontributorsandobligesthemtomakegoodwhathadbeenlostbytheinsolvencyofthecollector。Theparishisafterwardsreimposedinordertoreimbursethosefiveorsix。Suchreimpositionsarealwaysoverandabovethetailleoftheparticularyearinwhichtheyarelaidon。
Whenataxisimposedupontheprofitsofstockinaparticularbranchoftrade，thetradersareallcarefultobringnomoregoodstomarketthanwhattheycansellatapricesufficienttoreimbursethemforadvancingthetax。Someofthemwithdrawapartoftheirstocksfromthetrade，andthemarketismoresparinglysuppliedthanbefore。Thepriceofthegoodsrises，andthefinalpaymentofthetaxfallsupontheconsumer。
Butwhenataxisimposedupontheprofitsofstockemployedinagriculture，itisnottheinterestofthefarmerstowithdrawanypartoftheirstockfromthatemployment。Eachfarmeroccupiesacertainquantityofland，forwhichhipaysrent。Forthepropercultivationofthislandacertainquantityofstockisnecessary，andbywithdrawinganypartofthisnecessaryquantity，thefarmerisnotlikelytobemoreabletopayeithertherentorthetax。Inordertopaythetax，itcanneverbehisinteresttodiminishthequantityofhisproduce，norconsequentlytosupplythemarketmoresparinglythanbefore。Thetax，therefore，willneverenablehimtoraisethepriceofhisproducesoastoreimbursehimselfbythrowingthefinalpaymentupontheconsumer。Thefarmer，however，musthavehisreasonableprofitaswellaseveryotherdealer，otherwisehemustgiveupthetrade。Aftertheimpositionofataxofthiskind，hecangetthisreasonableprofitonlybypayinglessrenttothelandlord。
Themoreheisobligedtopayinthewayoftaxthelesshecanaffordtopayinthewayofrent。Ataxofthiskindimposedduringthecurrencyofaleasemay，nodoubt，distressorruinthefarmer。Upontherenewaloftheleaseitmustalwaysfalluponthelandlord。
Inthecountrieswherethepersonaltailletakesplace，thefarmeriscommonlyassessedinproportiontothestockwhichheappearstoemployincultivation。Heis，uponthisaccount，frequentlyafraidtohaveagoodteamofhorsesoroxen，butendeavourstocultivatewiththemeanestandmostwretchedinstrumentsofhusbandrythathecan。Suchishisdistrustinthejusticeofhisassessorsthathecounterfeitspoverty，andwishestoappearscarceabletopayanythingforfearofbeingobligedtopaytoomuch。Bythismiserablepolicyhedoesnot，perhaps，alwaysconsulthisowninterestinthemosteffectualmanner，andheprobablylosesmorebythediminutionofhisproducethanhesavesbythatofhistax。Though，inconsequenceofthiswretchedcultivation，themarketis，nodoubt，somewhatworsesupplied，yetthesmallriseofpricewhichmayoccasion，asitisnotlikelyeventoindemnifythefarmerforthediminutionofhisproduce，itisstilllesslikelytoenablehimtopaymorerenttothelandlord。Thepublic，thefarmer，thelandlord，allsuffermoreorlessbythisdegradedcultivation。Thatthepersonaltailletends，inmanydifferentways，todiscouragecultivation，andconsequentlytodryuptheprincipalsourceofthewealthofeverygreatcountry，IhavealreadyhadoccasiontoobserveinthethirdbookofthisInquiry。
Whatarecalledpoll—taxesinthesouthernprovincesofNorthAmerica，andintheWestIndianIslandsannualtaxesofsomuchaheaduponeverynegro，areproperlytaxesupontheprofitsofacertainspeciesofstockemployedinagriculture。Astheplantersare，thegreaterpartofthem，bothfarmersandlandlords，thefinalpaymentofthetaxfallsuponthemintheirqualityoflandlordswithoutanyretribution。
TaxesofsomuchaheaduponthebondmenemployedincultivationseemancientlytohavebeencommonalloverEurope。
TheresubsistsatpresentataxofthiskindintheempireofRussia。Itisprobablyuponthisaccountthatpoll—taxesofallkindshaveoftenbeenrepresentedasbadgesofslavery。Everytax，however，istothepersonwhopaysitabadge，notofslavery，butofliberty。Itdenotesthatheissubjecttogovernment，indeed，butthat，ashehassomeproperty，hecannothimselfbethepropertyofamaster。Apoll—taxuponslavesisaltogetherdifferentfromapoll—taxuponfreemen。Thelatterispaidbythepersonsuponwhomitisimposed;theformerbyadifferentsetofpersons。Thelatteriseitheraltogetherarbitraryoraltogetherunequal，andinmostcasesisboththeoneandtheother;theformer，thoughinsomerespectsunequal，differentslavesbeingofdifferentvalues，isinnorespectarbitrary。Everymasterwhoknowsthenumberofhisownslavesknowsexactlywhathehastopay。Thosedifferenttaxes，however，beingcalledbythesamename，havebeenconsideredasofthesamenature。
ThetaxeswhichinHollandareimposeduponmen—andmaid—servantsaretaxes，notuponstock，butuponexpense，andsofarresemblethetaxesuponconsumablecommodities。Thetaxofaguineaaheadforeveryman—servantwhichhaslatelybeenimposedinGreatBritainisofthesamekind。Itfallsheaviestuponthemiddlingrank。Amanoftwohundredayearmaykeepasinglemanservant。Amanoftenthousandayearwillnotkeepfifty。Itdoesnotaffectthepoor。
Taxesupontheprofitsofstockinparticularemploymentscanneveraffecttheinterestofmoney。Nobodywilllendhismoneyforlessinteresttothosewhoexercisethetaxedthantothosewhoexercisetheuntaxedemployments。Taxesupontherevenuearisingfromstockinallemploymentswherethegovernmentattemptstolevythemwithanydegreeofexactness，will，inmanycases，fallupontheinterestofmoney。TheVingtieme，ortwentiethpenny，inFranceisataxofthesamekindwithwhatiscalledtheland—taxinEngland，andisassessed，inthesamemanner，upontherevenuearisingfromland，houses，andstock。Sofarasitaffectsstockitisassessed，thoughnotwithgreatrigour，yetwithmuchmoreexactnessthanthatpartoftheland—taxofEnglandwhichisimposeduponthesamefund。It，inmanycases，fallsaltogetherupontheinterestofmoney。MoneyisfrequentlysunkinFranceuponwhatarecalledContractsfortheconstitutionofarent;thatis，perpetualannuitiesredeemableatanytimebythedebtoruponrepaymentofthesumoriginallyadvanced，butofwhichthisredemptionisnotexigiblebythecreditorexceptinparticularcases。TheVingtieme，seemsnottohaveraisedtherateofthoseannuities，thoughitisexactlylevieduponthemall。
AppendixtoARTICLESIandII。
TaxesupontheCapitalValueofLand，Houses，andStockWhilepropertyremainsinthepossessionofthesameperson，whateverpermanenttaxesmayhavebeenimposeduponit，theyhaveneverbeenintendedtodiminishortakeawayanypartofitscapitalvalue，butonlysomepartoftherevenuearisingfromit。
Butwhenpropertychangeshands，whenitistransmittedeitherfromthedeadtotheliving，orfromthelivingtotheliving，suchtaxeshavefrequentlybeenimposeduponitasnecessarilytakeawaysomepartofitscapitalvalue。
Thetransferenceofallsortsofpropertyfromthedeadtotheliving，andthatofimmovableproperty，oflandsandhouses，fromthelivingtotheliving，aretransactionswhichareintheirnatureeitherpublicandnotorious，orsuchascannotbelongconcealed。Suchtransactions，therefore，maybetaxeddirectly。Thetransferenceofstock，ormovableproperty，fromthelivingtotheliving，bythelendingofmoney，isfrequentlyasecrettransaction，andmayalwaysbemadeso。Itcannoteasily，therefore，betaxeddirectly。Ithasbeentaxedindirectlyintwodifferentways;first，byrequiringthatthedeedcontainingtheobligationtorepayshouldbewrittenuponpaperorparchmentwhichhadpaidacertainstamp—duty，otherwisenottobevalid;secondly，byrequiring，underthelikepenaltyofinvalidity，thatitshouldberecordedeitherinapublicorsecretregister，andbyimposingcertaindutiesuponsuchregistration。Stamp—dutiesanddutiesofregistrationhavefrequentlybeenimposedlikewiseuponthedeedstransferringpropertyofallkindsfromthedeadtotheliving，anduponthosetransferringimmovablepropertyfromthelivingtotheliving，transactionswhichmighteasilyhavebeentaxeddirectly。
TheVicesimaHereditatum，thetwentiethpennyofinheritancesimposedbyAugustusupontheancientRomans，wasataxuponthetransferenceofpropertyfromthedeadtotheliving。DionCassius，theauthorwhowritesconcerningittheleastindistinctly，saysthatitwasimposeduponallsuccessions，legacies，anddonationsincaseofdeath，exceptuponthosetothenearestrelationsandtothepoor。
OfthesamekindistheDutchtaxuponsuccessions。
Collateralsuccessionsaretaxed，accordingtothedegreeofrelation，fromfivetothirtypercentuponthewholevalueofthesuccession。Testamentarydonations，orlegaciestocollaterals，aresubjecttothelikeduties。Thosefromhusbandtowife，orfromwifetohusband，tothefiftiethpenny。TheLuctuosaHereditas，themournfulsuccessionofascendantstodescendants，tothetwentiethpennyonly。Directsuccessions，orthoseofdescendantstoascendants，paynotax。Thedeathofafather，tosuchofhischildrenasliveinthesamehousewithhim，isseldomattendedwithanyincrease，andfrequentlywithaconsiderablediminutionofrevenue，bythelossofhisindustry，ofhisoffice，orofsomelife—rentestateofwhichhemayhavebeeninpossession。Thattaxwouldbecruelandoppressivewhichaggravatedtheirlossbytakingfromthemanypartofhissuccession。Itmay，however，sometimesbeotherwisewiththosechildrenwho，inthelanguageoftheRomanlaw，aresaidtobeemancipated;inthatoftheScotchlaw，tobeforisfamiliated;
thatis，whohavereceivedtheirportion，havegotfamiliesoftheirown，andaresupportedbyfundsseparateandindependentofthoseoftheirfather。Whateverpartofhissuccessionmightcometosuchchildrenwouldbearealadditiontotheirfortune，andmighttherefore，perhaps，withoutmoreinconveniencythanwhatattendsalldutiesofthiskind，beliabletosometax。
Thecasualtiesofthefeudallawweretaxesuponthetransferenceofland，bothfromthedeadtotheliving，andfromthelivingtotheliving。InancienttimestheyconstitutedineverypartofEuropeoneoftheprincipalbranchesoftherevenueofthecrown。
Theheirofeveryimmediatevassalofthecrownpaidacertainduty，generallyayear’srent，uponreceivingtheinvestitureoftheestate。Iftheheirwasaminor，thewholerentsoftheestateduringthecontinuanceoftheminoritydevolvedtothesuperiorwithoutanyotherchargebesidesthemaintenanceoftheminor，andthepaymentofthewidow’sdowerwhentherehappenedtobeadowagerupontheland。Whentheminorcametobeofage，anothertax，calledRelief，wasstillduetothesuperior，whichgenerallyamountedlikewisetoayear’srent。
Alongminority，whichinthepresenttimessofrequentlydisburdensagreatestateofallitsincumbrancesandrestoresthefamilytotheirancientsplendour，couldinthosetimeshavenosucheffect。Thewaste，andnotthedisincumbranceoftheestate，wasthecommoneffectofalongminority。
Bythefeudallawthevassalcouldnotalienatewithouttheconsentofhissuperior，whogenerallyextortedafineorcompositionforgrantingit。Thisfine，whichwasatfirstarbitrary，cameinmanycountriestoberegulatedatacertainportionofthepriceoftheland。Insomecountrieswherethegreaterpartoftheotherfeudalcustomshavegoneintodisuse，thistaxuponthealienationoflandstillcontinuestomakeaveryconsiderablebranchoftherevenueofthesovereign。InthecantonofBerneitissohighasasixthpartofthepriceofallnoblefiefs，andatenthpartofthatofallignobleones。InthecantonofLucernethetaxuponthesaleoflandsisnotuniversal，andtakesplaceonlyincertaindistricts。Butifanypersonsellshislandinordertoremoveoutoftheterritory，hepaystenpercentuponthewholepriceofthesale。Taxesofthesamekinduponthesaleeitherofalllands，oroflandsheldbycertaintenures，takeplaceinmanyothercountries，andmakeamoreorlessconsiderablebranchoftherevenueofthesovereign。
Suchtransactionsmaybetaxedindirectlybymeanseitherofstamp—duties，orofdutiesuponregistration，andthosedutieseithermayormaynotbeproportionedtothevalueofthesubjectwhichistransferred。
InGreatBritainthestamp—dutiesarehigherorlower，notsomuchaccordingtothevalueofthepropertytransferred（aneighteenpennyorhalf—crownstampbeingsufficientuponabondforthelargestsumofmoney）asaccordingtothenatureofthedeed。Thehighestdonotexceedsixpoundsuponeverysheetofpaperorskinofparchment，andthesehighdutiesfallchieflyupongrantsfromthecrown，anduponcertainlawproceedings，withoutanyregardtothevalueofthesubject。ThereareinGreatBritainnodutiesontheregistrationofdeedsorwritings，exceptthefeesoftheofficerswhokeeptheregister，andtheseareseldommorethanareasonablerecompensefortheirlabour。
Thecrownderivesnorevenuefromthem。
InHollandtherearebothstamp—dutiesanddutiesuponregistration，whichinsomecasesare，andinsomearenot，proportionedtothevalueofthepropertytransferred。Alltestamentsmustbewrittenuponstampedpaperofwhichthepriceisproportionedtothepropertydisposedof，sothattherearestampswhichcostfromthreepence，orthreestiversasheet，tothreehundredflorins，equaltoabouttwenty—sevenpoundstenshillingsofourmoney。Ifthestampisofaninferiorpricetowhatthetestatoroughttohavemadeuseof，hissuccessionisconfiscated。Thisisoverandabovealltheirothertaxesonsuccession。Exceptbillsofexchange，andsomeothermercantilebills，allotherdeeds，bonds，andcontractsaresubjecttoastamp—duty。Thisduty，however，doesnotriseinproportiontothevalueofthesubject。Allsalesoflandandofhouses，andallmortgagesuponeither，mustberegistered，and，uponregistration，payadutytothestateoftwoandahalfpercentupontheamountofthepriceorofthemortgage。Thisdutyisextendedtothesaleofallshipsandvesselsofmorethantwotonsburden，whetherdeckedorundecked。These，itseems，areconsideredasasortofhousesuponthewater。Thesaleofmovables，whenitisorderedbyacourtofjustice，issubjecttothelikedutyoftwoandahalfpercent。
InFrancetherearebothstamp—dutiesanddutiesuponregistration。Theformerareconsideredasabranchoftheaidesorexcise，andintheprovinceswherethosedutiestakeplaceareleviedbytheexciseofficers。Thelatterareconsideredasabranchofthedomainofthecrown，andareleviedbyadifferentsetofofficers。
Thosemodesoftaxation，bystamp—dutiesandbydutiesuponregistration，areofverymoderninvention。Inthecourseoflittlemorethanacentury，however，stamp—dutieshave，inEurope，becomealmostuniversal，anddutiesuponregistrationextremelycommon。Thereisnoartwhichonegovernmentsoonerlearnsofanotherthanthatofdrainingmoneyfromthepocketsofthepeople。
Taxesuponthetransferenceofpropertyfromthedeadtothelivingfallfinallyaswellasimmediatelyuponthepersontowhomthepropertyistransferred。Taxesuponthesaleoflandfallaltogetherupontheseller。Thesellerisalmostalwaysunderthenecessityofselling，andmust，therefore，takesuchapriceashecanget。Thebuyerisscarceeverunderthenecessityofbuying，andwill，therefore，onlygivesuchapriceashelikes。Heconsiderswhatthelandwillcosthimintaxandpricetogether。Themoreheisobligedtopayinthewayoftax，thelesshewillbedisposedtogiveinthewayofprice。Suchtaxes，therefore，fallalmostalwaysuponanecessitousperson，andmust，therefore，befrequentlyverycruelandoppressive。Taxesuponthesaleofnew—builthouses，wherethebuildingissoldwithouttheground，fallgenerallyuponthebuyer，becausethebuildermustgenerallyhavehisprofit，otherwisehemustgiveupthetrade。Ifheadvancesthetax，therefore，thebuyermustgenerallyrepayittohim。Taxesuponthesaleofoldhouses，forthesamereasonasthoseuponthesaleofland，fallgenerallyupontheseller，whominmostcaseseitherconveniencyornecessityobligestosell。Thenumberofnew—builthousesthatareannuallybroughttomarketismoreorlessregulatedbythedemand。Unlessthedemandissuchastoaffordthebuilderhisprofit，afterpayingallexpenses，hewillbuildnomorehouses。
Thenumberofoldhouseswhichhappenatanytimetocometomarketisregulatedbyaccidentsofwhichthegreaterparthavenorelationtothedemand。Twoorthreegreatbankruptciesinamercantiletownwillbringmanyhousestosalewhichmustbesoldforwhatcanbegotforthem。Taxesuponthesaleofground—rentsfallaltogetherupontheseller，forthesamereasonasthoseuponthesaleofland。Stamp—duties，anddutiesupontheregistrationofbondsandcontractsforborrowedmoney，fallaltogetherupontheborrower，and，infact，arealwayspaidbyhim。Dutiesofthesamekinduponlawproceedingsfalluponthesuitors。Theyreducetoboththecapitalvalueofthesubjectindispute。Themoreitcoststoacquireanyproperty，thelessmustbethenetvalueofitwhenacquired。
Alltaxesuponthetransferenceofpropertyofeverykind，sofarastheydiminishthecapitalvalueofthatproperty，tendtodiminishthefundsdestinedforthemaintenanceofproductivelabour。Theyareallmoreorlessunthriftytaxesthatincreasetherevenueofthesovereign，whichseldommaintainsanybutunproductivelabourers，attheexpenseofthecapitalofthepeople，whichmaintainsnonebutproductive。
Suchtaxes，evenwhentheyareproportionedtothevalueofthepropertytransferred，arestillunequal，thefrequencyoftransferencenotbeingalwaysequalinpropertyofequalvalue。
Whentheyarenotproportionedtothisvalue，whichisthecasewiththegreaterpartofthestamp—dutiesanddutiesofregistration，theyarestillmoreso。Theyareinnorespectarbitrary，butareormaybeinallcasesperfectlyclearandcertain。Thoughtheysometimesfalluponthepersonwhoisnotveryabletopay，thetimeofpaymentisinmostcasessufficientlyconvenientforhim。Whenthepaymentbecomesdue，hemustinmostcaseshavethemoneytopay。Theyareleviedatverylittleexpense，andingeneralsubjectthecontributorstonootherinconveniencybesidesalwaystheunavoidableoneofpayingthetax。
InFrancethestamp—dutiesarenotmuchcomplainedof。Thoseofregistration，whichtheycalltheControle，are。Theygiveoccasion，itispretended，tomuchextortionintheofficersofthefarmers—generalwhocollectthetax，whichisinagreatmeasurearbitraryanduncertain。InthegreaterpartofthelibelswhichhavebeenwrittenagainstthepresentsystemoffinancesinFrancetheabusesoftheControlemakeaprincipalarticle。Uncertainty，however，doesnotseemtobenecessarilyinherentinthenatureofsuchtaxes。Ifthepopularcomplaintsarewellfounded，theabusemustarise，notsomuchfromthenatureofthetaxasfromthewantofprecisionanddistinctnessinthewordsoftheedictsorlawswhichimposeit。
Theregistrationofmortgages，andingeneralofallrightsuponimmovableproperty，asitgivesgreatsecuritybothtocreditorsandpurchasers，isextremelyadvantageoustothepublic。Thatofthegreaterpartofdeedsofotherkindsisfrequentlyinconvenientandevendangeroustoindividuals，withoutanyadvantagetothepublic。Allregisterswhich，itisacknowledged，oughttobekeptsecret，oughtcertainlynevertoexist。Thecreditofindividualsoughtcertainlynevertodependuponsoveryslenderasecurityastheprobityandreligionoftheinferiorofficersofrevenue。Butwherethefeesofregistrationhavebeenmadeasourceofrevenuetothesovereign，registerofficeshavecommonlybeenmultipliedwithoutend，bothforthedeedswhichoughttoberegistered，andforthosewhichoughtnot。InFrancethereareseveraldifferentsortsofsecretregisters。Thisabuse，thoughnotperhapsanecessary，itmustbeacknowledged，isaverynaturaleffectofsuchtaxes。
Suchstamp—dutiesasthoseinEnglanduponcardsanddice，uponnewspapersandperiodicalpamphlets，etc。，areproperlytaxesuponconsumption;thefinalpaymentfallsuponthepersonswhouseorconsumesuchcommodities。Suchstamp—dutiesasthoseuponlicencestoretailale，wine，andspirituousliquors，thoughintended，perhaps，tofallupontheprofitsoftheretailers，arelikewisefinallypaidbytheconsumersofthoseliquors。Suchtaxes，thoughcalledbythesamename，andleviedbythesameofficersandinthesamemannerwiththestamp—dutiesabovementioneduponthetransferenceofproperty，are，however，ofaquitedifferentnature，andfalluponquitedifferentfunds。
ARTICLEIII
TaxesupontheWagesofLabourThewagesoftheinferiorclassesofworkmen，Ihaveendeavouredtoshowinthefirstbook，areeverywherenecessarilyregulatedbytwodifferentcircumstances;thedemandforlabour，andtheordinaryoraveragepriceofprovisions。Thedemandforlabour，accordingasithappenstobeeitherincreasing，stationary，ordeclining，ortorequireanincreasing，stationary，ordecliningpopulation，regulatesthesubsistenceofthelabourer，anddeterminesinwhatdegreeitshallbe，eitherliberal，moderate，orscanty。Theordinaryoraveragepriceofprovisionsdeterminesthequantityofmoneywhichmustbepaidtotheworkmaninordertoenablehim，oneyearwithanother，topurchasethisliberal，moderate，orscantysubsistence。Whilethedemandforlabourandthepriceofprovisions，therefore，remainthesame，adirecttaxuponthewagesoflabourcanhavenoothereffectthantoraisethemsomewhathigherthanthetax。Letussuppose，forexample，thatinaparticularplacethedemandforlabourandthepriceofprovisionsweresuchastorendertenshillingsaweektheordinarywagesoflabour，andthatataxofone—fifth，orfourshillingsinthepound，wasimposeduponwages。Ifthedemandforlabourandthepriceofprovisionsremainedthesame，itwouldstillbenecessarythatthelabourershouldinthatplaceearnsuchasubsistenceascouldbeboughtonlyfortenshillingsaweekfreewages。Butinordertoleavehimsuchfreewagesafterpayingsuchatax，thepriceoflabourmustinthatplacesoonrise，nottotwelveshillingsaweekonly，buttotwelveandsixpence;thatis，inordertoenablehimtopayataxofone—fifth，hiswagesmustnecessarilysoonrise，notone—fifthpartonly，butone—fourth。Whateverwastheproportionofthetax，thewagesoflabourmustinallcasesrise，notonlyinthatproportion，butinahigherproportion。Ifthetax，forexample，wasone—tenth，thewagesoflabourmustnecessarilysoonrise，notone—tenthpartonly，butone—eighth。
Adirecttaxuponthewagesoflabour，therefore，thoughthelabourermightperhapspayitoutofhishand，couldnotproperlybesaidtobeevenadvancedbyhim;atleastiftiledemandforlabourandtheaveragepriceofprovisionsremainedthesameafterthetaxasbeforeit。Inallsuchcases，notonlythetaxbutsomethingmorethanthetaxwouldinrealitybeadvancedbythepersonwhoimmediatelyemployedhim。Thefinalpaymentwouldindifferentcasesfallupondifferentpersons。Therisewhichsuchataxmightoccasioninthewagesofmanufacturinglabourwouldbeadvancedbythemastermanufacturer，whowouldbothbeentitledandobligedtochargeit，withaprofit，uponthepriceofhisgoods。Thefinalpaymentofthisriseofwages，therefore，togetherwiththeadditionalprofitofthemastermanufacturer，wouldfallupontheconsumer。Therisewhichsuchataxmightoccasioninthewagesofcountrylabourwouldbeadvancedbythefarmer，who，inordertomaintainthesamenumberoflabourersasbefore，wouldbeobligedtoemployagreatercapital。Inordertogetbackthisgreatercapital，togetherwiththeordinaryprofitsofstock，itwouldbenecessarythatheshouldretainalargerportion，orwhatcomestothesamething，thepriceofalargerportion，oftheproduceoftheland，andconsequentlythatheshouldpaylessrenttothelandlord。Thefinalpaymentofthisriseofwages，therefore，wouldinthiscasefalluponthelandlord，togetherwiththeadditionalprofitofthefarmerwhohadadvancedit。Inallcasesadirecttaxuponthewagesoflabourmust，inthelong—run，occasionbothagreaterreductionintherentofland，andagreaterriseinthepriceofmanufacturedgoods，thanwouldhavefollowedfromtheproperassessmentofasumequaltotheproduceofthetaxpartlyupontherentofland，andpartlyuponconsumablecommodities。