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。