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。
ARTICLEIVTaxeswhich,itisintended,shouldfallindifferentlyuponeverydifferentSpeciesofRevenueThetaxeswhich,itisintended,shouldfallindifferentlyuponeverydifferentspeciesofrevenue,arecapitationtaxes,andtaxesuponconsumablecommodities。Thesemustbepaidindifferentlyfromwhateverrevenuethecontributorsmaypossess;
fromtherentoftheirland,fromtheprofitsoftheirstock,orfromthewagesoftheirlabour。
CapitationTaxesCapitationtaxes,ifitisattemptedtoproportionthemtothefortuneorrevenueofeachcontributor,becomealtogetherarbitrary。Thestateofaman’sfortunevariesfromdaytoday,andwithoutaninquisitionmoreintolerablethananytax,andrenewedatleastonceeveryyear,canonlybeguessedat。Hisassessment,therefore,mustinmostcasesdependuponthegoodorbadhumourofhisassessors,andmust,therefore,bealtogetherarbitraryanduncertain。
Capitationtaxes,iftheyareproportionednottothesupposedfortune,buttotherankofeachcontributor,becomealtogetherunequal,thedegreesoffortunebeingfrequentlyunequalinthesamedegreeofrank。
Suchtaxes,therefore,ifitisattemptedtorenderthemequal,becomealtogetherarbitraryanduncertain,andifitisattemptedtorenderthemcertainandnotarbitrary,becomealtogetherunequal。Letthetaxbelightorheavy,uncertaintyisalwaysagreatgrievance。Inalighttaxaconsiderabledegreeofinequalitymaybesupported;inaheavyoneitisaltogetherintolerable。
Inthedifferentpoll—taxeswhichtookplaceinEnglandduringthereignofWilliamIIIthecontributorswere,thegreaterpartofthem,assessedaccordingtothedegreeoftheirrank;asdukes,marquisses,earls,viscounts,barons,esquires,gentlemen,theeldestandyoungestsonsofpeers,etc。Allshopkeepersandtradesmenworthmorethanthreehundredpounds,thatis,thebettersortofthem,weresubjecttothesameassessment,howgreatsoevermightbethedifferenceintheirfortunes。Theirrankwasmoreconsideredthantheirfortune。
Severalofthosewhointhefirstpoll—taxwereratedaccordingtotheirsupposedfortunewereafterwardsratedaccordingtotheirrank。Serjeants,attorneys,andproctorsatlaw,whointhefirstpoll—taxwereassessedatthreeshillingsinthepoundoftheirsupposedincome,wereafterwardsassessedasgentlemen。Intheassessmentofataxwhichwasnotveryheavy,aconsiderabledegreeofinequalityhadbeenfoundlessinsupportablethananydegreeofuncertainty。
InthecapitationwhichhasbeenleviedinFrancewithoutanyinterruptionsincethebeginningofthepresentcentury,thehighestordersofpeopleareratedaccordingtotheirrankbyaninvariabletariff;thelowerordersofpeople,accordingtowhatissupposedtobetheirfortune,byanassessmentwhichvariesfromyeartoyear。Theofficersoftheking’scourt,thejudgesandotherofficersinthesuperiorcourtsofjustice,theofficersofthetroops,etc。,areassessedinthefirstmanner。
Theinferiorranksofpeopleintheprovincesareassessedinthesecond。InFrancethegreateasilysubmittoaconsiderabledegreeofinequalityinataxwhich,sofarasitaffectsthem,isnotaveryheavyone,butcouldnotbrookthearbitraryassessmentofanintendant。Theinferiorranksofpeoplemust,inthatcountry,sufferpatientlytheusagewhichtheirsuperiorsthinkpropertogivethem。
InEnglandthedifferentpoll—taxesneverproducedthesumwhichhadbeenexpectedfromthem,orwhich,itwassupposed,theymighthaveproduced,hadtheybeenexactlylevied。InFrancethecapitationalwaysproducesthesumexpectedfromit。ThemildgovernmentofEngland,whenitassessedthedifferentranksofpeopletothepoll—tax,contenteditselfwithwhatthatassessmenthappenedtoproduce,andrequirednocompensationforthelosswhichthestatemightsustaineitherbythosewhocouldnotpay,orbythosewhowouldnotpay(forthereweremanysuch),andwho,bytheindulgentexecutionofthelaw,werenotforcedtopay。ThemoreseveregovernmentofFranceassessesuponeachgeneralityacertainsum,whichtheintendantmustfindashecan。Ifanyprovincecomplainsofbeingassessedtoohigh,itmay,intheassessmentofnextyear,obtainanabatementproportionedtotheoverchargeoftheyearbefore。Butitmustpayinthemeantime。Theintendant,inordertobesureoffindingthesumassesseduponhisgenerality,wasempoweredtoassessitinalargersumthatthefailureorinabilityofsomeofthecontributorsmightbecompensatedbytheoverchargeoftherest,andtill1765thefixationofthissurplusassessmentwasleftaltogethertohisdiscretion。Inthatyear,indeed,thecouncilassumedthispowertoitself。Inthecapitationoftheprovinces,itisobservedbytheperfectlywell—informedauthoroftheMemoiresupontheimpositionsinFrance,theproportionwhichfallsuponthenobility,anduponthosewhoseprivilegesexemptthemfromthetaille,istheleastconsiderable。Thelargestfallsuponthosesubjecttothetaille,whoareassessedtothecapitationatsomuchapoundofwhattheypaytothatothertax。
Capitationtaxes,sofarastheyarelevieduponthelowerranksofpeople,aredirecttaxesuponthewagesoflabour,andareattendedwithalltheinconveniencesofsuchtaxes。
Capitationtaxesareleviedatlittleexpense,and,wheretheyarerigorouslyexacted,affordaverysurerevenuetothestate。Itisuponthisaccountthatincountrieswheretheease,comfort,andsecurityoftheinferiorranksofpeoplearelittleattendedto,capitationtaxesareverycommon。Itisingeneral,however,butasmallpartofthepublicrevenuewhich,inagreatempire,haseverbeendrawnfromsuchtaxes,andthegreatestsumwhichtheyhaveeveraffordedmightalwayshavebeenfoundinsomeotherwaymuchmoreconvenienttothepeople。
TaxesuponConsumableCommoditiesTheimpossibilityoftaxingthepeople,inproportiontotheirrevenue,byanycapitation,seemstohavegivenoccasiontotheinventionoftaxesuponconsumablecommodities。Thestate,notknowinghowtotax,directlyandproportionably,therevenueofitssubjects,endeavourstotaxitindirectlybytaxingtheirexpense,which,itissupposed,willinmostcasesbenearlyinproportiontotheirrevenue。Theirexpenseistaxedbytaxingtheconsumablecommoditiesuponwhichitislaidout。
Consumablecommoditiesareeithernecessariesorluxuries。
BynecessariesIunderstandnotonlythecommoditieswhichareindispensablynecessaryforthesupportoflife,butwhateverthecustomofthecountryrendersitindecentforcreditablepeople,evenofthelowestorder,tobewithout。Alinenshirt,forexample,is,strictlyspeaking,notanecessaryoflife。TheGreeksandRomanslived,Isuppose,verycomfortablythoughtheyhadnolinen。Butinthepresenttimes,throughthegreaterpartofEurope,acreditableday—labourerwouldbeashamedtoappearinpublicwithoutalinenshirt,thewantofwhichwouldbesupposedtodenotethatdisgracefuldegreeofpovertywhich,itispresumed,nobodycanwellfallintowithoutextremebadconduct。Custom,inthesamemanner,hasrenderedleathershoesanecessaryoflifeinEngland。Thepoorestcreditablepersonofeithersexwouldbeashamedtoappearinpublicwithoutthem。InScotland,customhasrenderedthemanecessaryoflifetothelowestorderofmen;butnottothesameorderofwomen,whomay,withoutanydiscredit,walkaboutbarefooted。InFrancetheyarenecessariesneithertomennortowomen,thelowestrankofbothsexesappearingtherepublicly,withoutanydiscredit,sometimesinwoodenshoes,andsometimesbarefooted。Undernecessaries,therefore,Icomprehendnotonlythosethingswhichnature,butthosethingswhichtheestablishedrulesofdecencyhaverenderednecessarytothelowestrankofpeople。AllotherthingsIcallluxuries,withoutmeaningbythisappellationtothrowthesmallestdegreeofreproachuponthetemperateuseofthem。Beerandale,forexample,inGreatBritain,andwine,eveninthewinecountries,Icallluxuries。Amanofanyrankmay,withoutanyreproach,abstaintotallyfromtastingsuchliquors。Naturedoesnotrenderthemnecessaryforthesupportoflife,andcustomnowhererendersitindecenttolivewithoutthem。
Asthewagesoflabourareeverywhereregulated,partlybythedemandforit,andpartlybytheaveragepriceofthenecessaryarticlesofsubsistence,whateverraisesthisaveragepricemustnecessarilyraisethosewagessothatthelabourermaystillbeabletopurchasethatquantityofthosenecessaryarticleswhichthestateofthedemandforlabour,whetherincreasing,stationary,ordeclining,requiresthatheshouldhave。Ataxuponthosearticlesnecessarilyraisestheirpricesomewhathigherthantheamountofthetax,becausethedealer,whoadvancesthetax,mustgenerallygetitbackwithaprofit。
Suchataxmust,therefore,occasionariseinthewagesoflabourproportionabletothisriseofprice。
Itisthusthatataxuponthenecessariesoflifeoperatesexactlyinthesamemannerasadirecttaxuponthewagesoflabour。Thelabourer,thoughhemaypayitoutofhishand,cannot,foranyconsiderabletimeatleast,beproperlysaideventoadvanceit。Itmustalwaysinthelong—runbeadvancedtohimbyhisimmediateemployerintheadvancedrateofhiswages。Hisemployer,ifheisamanufacturer,willchargeuponthepriceofhisgoodsthisriseofwages,togetherwithaprofit;sothatthefinalpaymentofthetax,togetherwiththisovercharge,willfallupontheconsumer。Ifhisemployerisafarmer,thefinalpayment,togetherwithalikeovercharge,willfallupontherentofthelandlord。
ItisotherwisewithtaxesuponwhatIcallluxuries,evenuponthoseofthepoor。Theriseinthepriceofthetaxedcommoditieswillnotnecessarilyoccasionanyriseinthewagesoflabour。Ataxupontobacco,forexample,thoughaluxuryofthepooraswellasoftherich,willnotraisewages。ThoughitistaxedinEnglandatthreetimes,andinFranceatfifteentimesitsoriginalprice,thosehighdutiesseemtohavenoeffectuponthewagesoflabour。Thesamethingmaybesaidofthetaxesuponteaandsugar,whichinEnglandandHollandhavebecomeluxuriesofthelowestranksofpeople,andofthoseuponchocolate,whichinSpainissaidtohavebecomeso。ThedifferenttaxeswhichinGreatBritainhaveinthecourseofthepresentcenturybeenimposeduponspirituousliquorsarenotsupposedtohavehadanyeffectuponthewagesoflabour。Theriseinthepriceofporter,occasionedbyanadditionaltaxofthreeshillingsuponthebarrelofstrongbeer,hasnotraisedthewagesofcommonlabourinLondon。Thesewereabouteighteenpenceandtwentypenceadaybeforethetax,andtheyarenotmorenow。
Thehighpriceofsuchcommoditiesdoesnotnecessarilydiminishtheabilityoftheinferiorranksofpeopletobringupfamilies。Uponthesoberandindustriouspoor,taxesuponsuchcommoditiesactassumptuarylaws,anddisposethemeithertomoderate,ortorefrainaltogetherfromtheuseofsuperfluitieswhichtheycannolongereasilyafford。Theirabilitytobringupfamilies,inconsequenceofthisforcedfrugality,insteadofbeingdiminished,isfrequently,perhaps,increasedbythetax。
Itisthesoberandindustriouspoorwhogenerallybringupthemostnumerousfamilies,andwhoprincipallysupplythedemandforusefullabour。Allthepoor,indeed,arenotsoberandindustrious,andthedissoluteanddisorderlymightcontinuetoindulgethemselvesintheuseofsuchcommoditiesafterthisriseofpriceinthesamemannerasbeforewithoutregardingthedistresswhichthisindulgencemightbringupontheirfamilies。
Suchdisorderlypersons,however,seldomrearupnumerousfamilies,theirchildrengenerallyperishingfromneglect,mismanagement,andthescantinessorunwholesomenessoftheirfood。Ifbythestrengthoftheirconstitutiontheysurvivethehardshipstowhichthebadconductoftheirparentsexposesthem,yettheexampleofthatbadconductcommonlycorruptstheirmorals,sothat,insteadofbeingusefultosocietybytheirindustry,theybecomepublicnuisancesbytheirvicesanddisorders。Thoughtheadvancedpriceoftheluxuriesofthepoor,therefore,mightincreasesomewhatthedistressofsuchdisorderlyfamilies,andtherebydiminishsomewhattheirabilitytobringupchildren,itwouldnotprobablydiminishmuchtheusefulpopulationofthecountry。
Anyriseintheaveragepriceofnecessaries,unlessitiscompensatedbyaproportionableriseinthewagesoflabour,mustnecessarilydiminishmoreorlesstheabilityofthepoortobringupnumerousfamilies,andconsequentlytosupplythedemandforusefullabour,whatevermaybethestateofthatdemand,whetherincreasing,stationary,ordeclining,orsuchasrequiresanincreasing,stationary,ordecliningpopulation。
Taxesuponluxurieshavenotendencytoraisethepriceofanyothercommoditiesexceptthatofthecommoditiestaxed。Taxesuponnecessaries,byraisingthewagesoflabour,necessarilytendtoraisethepriceofallmanufactures,andconsequentlytodiminishtheextentoftheirsaleandconsumption。Taxesuponluxuriesarefinallypaidbytheconsumersofthecommoditiestaxedwithoutanyretribution。Theyfallindifferentlyuponeveryspeciesofrevenue,thewagesoflabour,theprofitsofstock,andtherentofland。Taxesuponnecessaries,sofarastheyaffectthelabouringpoor,arefinallypaid,partlybylandlordsinthediminishedrentoftheirlands,andpartlybyrichconsumers,whetherlandlordsorothers,intheadvancedpriceofmanufacturedgoods,andalwayswithaconsiderableovercharge。
Theadvancedpriceofsuchmanufacturesasarerealnecessariesoflife,andaredestinedfortheconsumptionofthepoor,ofcoarsewoollens,forexample,mustbecompensatedtothepoorbyafurtheradvancementoftheirwages。Themiddlingandsuperiorranksofpeople,iftheyunderstandtheirowninterest,oughtalwaystoopposealltaxesuponthenecessariesoflife,aswellasalldirecttaxesuponthewagesoflabour。Thefinalpaymentofboththeoneandtheotherfallsaltogetheruponthemselves,andalwayswithaconsiderableovercharge。Theyfallheaviestuponthelandlords,whoalwayspayinadoublecapacity;inthatoflandlordsbythereductionoftheirrent,andinthatofrichconsumersbytheincreaseoftheirexpense。TheobservationofSirMatthewDecker,thatcertaintaxesare,inthepriceofcertaingoods,sometimesrepeatedandaccumulatedfourorfivetimes,isperfectlyjustwithregardtotaxesuponthenecessariesoflife。Inthepriceofleather,forexample,youmustpaynotonlyforthetaxupontheleatherofyourownshoes,butforapartofthatuponthoseoftheshoemakerandthetanner。Youmustpay,too,forthetaxuponthesalt,uponthesoap,anduponthecandleswhichthoseworkmenconsumewhileemployedinyourservice,andforthetaxupontheleatherwhichthesalt—maker,thesoap—maker,andthecandle—makerconsumewhileemployedintheirservice。
InGreatBritain,theprincipaltaxesuponthenecessariesoflifearethoseuponthefourcommoditiesjustnowmentioned,salt,leather,soap,andcandles。
Saltisaveryancientandaveryuniversalsubjectoftaxation。ItwastaxedamongtheRomans,anditissoatpresentin,Ibelieve,everypartofEurope。Thequantityannuallyconsumedbyanyindividualissosmall,andmaybepurchasedsogradually,thatnobody,itseemstohavebeenthought,couldfeelverysensiblyevenaprettyheavytaxuponit。ItisinEnglandtaxedatthreeshillingsandfourpenceabushel—aboutthreetimestheoriginalpriceofthecommodity。Insomeothercountriesthetaxisstillhigher。Leatherisarealnecessaryoflife。Theuseoflinenrenderssoapsuch。Incountrieswherethewinternightsarelong,candlesareanecessaryinstrumentoftrade。LeatherandsoapareinGreatBritaintaxedatthreehalfpenceapound,candlesatapenny;taxeswhich,upontheoriginalpriceofleather,mayamounttoabouteightortenpercent;uponthatofsoaptoabouttwentyorfive—and—twentypercent;anduponthatofcandlestoaboutfourteenorfifteenpercent;taxeswhich,thoughlighterthanthatuponsalt,arestillveryheavy。Asallthosefourcommoditiesarerealnecessariesoflife,suchheavytaxesuponthemmustincreasesomewhattheexpenseofthesoberandindustriouspoor,andmustconsequentlyraisemoreorlessthewagesoftheirlabour。
InacountrywherethewintersaresocoldasinGreatBritain,fuelis,duringthatseason,inthestrictestsenseoftheword,anecessaryoflife,notonlyforthepurposeofdressingvictuals,butforthecomfortablesubsistenceofmanydifferentsortsofworkmenwhoworkwithindoors;andcoalsarethecheapestofallfuel。ThepriceoffuelhassoimportantaninfluenceuponthatoflabourthatalloverGreatBritainmanufactureshaveconfinedthemselvesprincipallytothecoalcountries,otherpartsofthecountry,onaccountofthehighpriceofthisnecessaryarticle,notbeingabletoworksocheap。
Insomemanufactures,besides,coalisanecessaryinstrumentoftrade,asinthoseofglass,iron,andallothermetals。Ifabountycouldinanycasebereasonable,itmightperhapsbesouponthetransportationofcoalsfromthosepartsofthecountryinwhichtheyaboundtothoseinwhichtheyarewanted。Butthelegislature,insteadofabounty,hasimposedataxofthreeshillingsandthreepenceatonuponcoalcarriedcoastways,whichuponmostsortsofcoalismorethansixtypercentoftheoriginalpriceatthecoal—pit。Coalscarriedeitherbylandorbyinlandnavigationpaynoduty。Wheretheyarenaturallycheap,theyareconsumeddutyfree:wheretheyarenaturallydear,theyareloadedwithaheavyduty。
Suchtaxes,thoughtheyraisethepriceofsubsistence,andconsequentlythewagesoflabour,yettheyaffordaconsiderablerevenuetogovernmentwhichitmightnotbeeasytofindinanyotherway。Theremay,therefore,begoodreasonsforcontinuingthem。Thebountyupontheexportationofcorn,sofarasittendsintheactualstateoftillagetoraisethepriceofthatnecessaryarticle,producesallthelikebadeffects,andinsteadofaffordinganyrevenue,frequentlyoccasionsaverygreatexpensetogovernment。Thehighdutiesupontheimportationofforeigncorn,whichinyearsofmoderateplentyamounttoaprohibition,andtheabsoluteprohibitionoftheimportationeitheroflivecattleorofsaltprovisions,whichtakesplaceintheordinarystateofthelaw,andwhich,onaccountofthescarcity,isatpresentsuspendedforalimitedtimewithregardtoIrelandandtheBritishplantations,haveallthebadeffectsoftaxesuponthenecessariesoflife,andproducenorevenuetogovernment。Nothingseemsnecessaryfortherepealofsuchregulationsbuttoconvincethepublicofthefutilityofthatsysteminconsequenceofwhichtheyhavebeenestablished。
TaxesuponthenecessariesoflifearemuchhigherinmanyothercountriesthaninGreatBritain。Dutiesuponflourandmealwhengroundatthemill,anduponbreadwhenbakedattheoven,takeplaceinmanycountries。InHollandthemoneypriceofthebreadconsumedintownsissupposedtobedoubledbymeansofsuchtaxes。Inlieuofapartofthem,thepeoplewholiveinthecountrypayeveryyearsomuchaheadaccordingtothesortofbreadtheyaresupposedtoconsume。Thosewhoconsumewheatenbreadpaythreeguildersfifteenstivers—aboutsixshillingsandninepencehalfpenny。These,andsomeothertaxesofthesamekind,byraisingthepriceoflabour,aresaidtohaveruinedthegreaterpartofthemanufacturesofHolland。Similartaxes,thoughnotquitesoheavy,takeplaceintheMilanese,inthestatesofGenoa,intheduchyofModena,intheduchiesofParma,Placentia,andGuastalla,andintheecclesiasticalstate。A
Frenchauthorofsomenotehasproposedtoreformthefinancesofhiscountrybysubstitutingintheroomofthegreaterpartofothertaxesthismostruinousofalltaxes。Thereisnothingsoabsurd,saysCicero,whichhasnotsometimesbeenassertedbyphilosophers。
Taxesuponbutchers’meatarestillmorecommonthanthoseuponbread。Itmayindeedbedoubtedwhetherbutchers’meatisanywhereanecessaryoflife。Grainandothervegetables,withthehelpofmilk,cheese,andbutter,oroilwherebutterisnottobehad,itisknownfromexperience,can,withoutanybutchers’meat,affordthemostplentiful,themostwholesome,themostnourishing,andthemostinvigoratingdiet。Decencynowhererequiresthatanymanshouldeatbutchers’meat,asitinmostplacesrequiresthatheshouldwearalinenshirtorapairofleathershoes。
Consumablecommodities,whethernecessariesorluxuries,maybetaxedintwodifferentways。Theconsumermayeitherpayanannualsumonaccountofhisusingorconsuminggoodsofacertainkind,orthegoodsmaybetaxedwhiletheyremaininthehandsofthedealer,andbeforetheyaredeliveredtotheconsumer。Theconsumablegoodswhichlastaconsiderabletimebeforetheyareconsumedaltogetheraremostproperlytaxedintheoneway;thoseofwhichtheconsumptioniseitherimmediateormorespeedy,intheother。Thecoach—taxandplate—taxareexamplesoftheformermethodofimposing:thegreaterpartoftheotherdutiesofexciseandcustoms,ofthelatter。
Acoachmay,withgoodmanagement,lasttenortwelveyears。
Itmightbetaxed,onceforall,beforeitcomesoutofthehandsofthecoachmaker。Butitiscertainlymoreconvenientforthebuyertopayfourpoundsayearfortheprivilegeofkeepingacoachthantopayallatoncefortyorforty—eightpoundsadditionalpricetothecoachmaker,orasumequivalenttowhatthetaxislikelytocosthimduringthetimeheusesthesamecoach。Aserviceofplate,inthesamemanner,maylastmorethanacentury。Itiscertainlyeasierfortheconsumertopayfiveshillingsayearforeveryhundredouncesofplate,nearonepercentofthevalue,thantoredeemthislongannuityatfive—and—twentyorthirtyyears’purchase,whichwouldenhancethepriceatleastfive—and—twentyorthirtypercent。Thedifferenttaxeswhichaffecthousesarecertainlymoreconvenientlypaidbymoderateannualpaymentsthanbyaheavytaxofequalvalueuponthefirstbuildingorsaleofthehouse。
Itwasthewell—knownproposalofSirMatthewDeckerthatallcommodities,eventhoseofwhichtheconsumptioniseitherimmediateorveryspeedy,shouldbetaxedinthismanner,thedealeradvancingnothing,buttheconsumerpayingacertainannualsumforthelicencetoconsumecertaingoods。Theobjectofhisschemewastopromoteallthedifferentbranchesofforeigntrade,particularlythecarryingtrade,bytakingawayalldutiesuponimportationandexportation,andtherebyenablingthemerchanttoemployhiswholecapitalandcreditinthepurchaseofgoodsandthefreightofships,nopartofeitherbeingdivertedtowardstheadvancingoftaxes。Theproject,however,oftaxing,inthismanner,goodsofimmediateorspeedyconsumptionseemsliabletothefourfollowingveryimportantobjections。First,thetaxwouldbemoreunequal,ornotsowellproportionedtotheexpenseandconsumptionofthedifferentcontributorsasinthewayinwhichitiscommonlyimposed。Thetaxesuponale,wine,andspirituousliquors,whichareadvancedbythedealers,arefinallypaidbythedifferentconsumersexactlyinproportiontotheirrespectiveconsumption。Butifthetaxweretobepaidbypurchasingalicencetodrinkthoseliquors,thesoberwould,inproportiontohisconsumption,betaxedmuchmoreheavilythanthedrunkenconsumer。Afamilywhichexercisedgreathospitalitywouldbetaxedmuchmorelightlythanonewhoentertainedfewerguests。Secondly,thismodeoftaxation,bypayingforanannual,half—yearly,orquarterlylicencetoconsumecertaingoods,woulddiminishverymuchoneoftheprincipalconveniencesoftaxesupongoodsofspeedyconsumptionthepiecemealpayment。Inthepriceofthreepencehalfpenny,whichisatpresentpaidforapotofporter,thedifferenttaxesuponmalt,hops,andbeer,togetherwiththeextraordinaryprofitwhichthebrewerchargesforhavingadvancedthem,mayperhapsamounttoaboutthreehalfpence。Ifaworkmancanconvenientlysparethosethreehalfpence,hebuysapotofporter。Ifhecannot,hecontentshimselfwithapint,and,asapennysavedisapennygot,hethusgainsafarthingbyhistemperance。Hepaysthetaxpiecemealashecanaffordtopayit,andwhenhecanaffordtopayit,andeveryactofpaymentisperfectlyvoluntary,andwhathecanavoidifhechoosestodoso。Thirdly,suchtaxeswouldoperatelessassumptuarylaws。
Whenthelicencewasoncepurchased,whetherthepurchaserdrankmuchordranklittle,histaxwouldbethesame。Fourthly,ifaworkmanweretopayallatonce,byyearly,half—yearly,orquarterlypayments,ataxequaltowhatheatpresentpays,withlittleornoinconveniency,uponallthedifferentpotsandpintsofporterwhichhedrinksinanysuchperiodoftime,thesummightfrequentlydistresshimverymuch。Thismodeoftaxation,therefore,itseemsevident,couldnever,withoutthemostgrievousoppression,producearevenuenearlyequaltowhatisderivedfromthepresentmodewithoutanyoppression。Inseveralcountries,however,commoditiesofanimmediateorveryspeedyconsumptionaretaxedinthismanner。InHollandpeoplepaysomuchaheadforalicencetodrinktea。Ihavealreadymentionedataxuponbread,which,sofarasitisconsumedinfarm—housesandcountryvillages,isthereleviedinthesamemanner。
Thedutiesofexciseareimposedbrieflyupongoodsofhomeproducedestinedforhomeconsumption。Theyareimposedonlyuponafewsortsofgoodsofthemostgeneraluse。Therecanneverbeanydoubteitherconcerningthegoodswhicharesubjecttothoseduties,orconcerningtheparticulardutywhicheachspeciesofgoodsissubjectto。TheyfallalmostaltogetheruponwhatIcallluxuries,exceptingalwaysthefourdutiesabovementioned,uponsaltsoap,leather,candles,and,perhaps,thatupongreenglass。
Thedutiesofcustomsaremuchmoreancientthanthoseofexcise。Theyseemtohavebeencalledcustomsasdenotingcustomarypaymentswhichhadbeeninusefromtimeimmemorial。
Theyappeartohavebeenoriginallyconsideredastaxesupontheprofitsofmerchants。Duringthebarbaroustimesoffeudalanarchy,merchants,likealltheotherinhabitantsofburghs,wereconsideredaslittlebetterthanemancipatedbondmen,whosepersonsweredespised,andwhosegainswereenvied。Thegreatnobility,whohadconsentedthatthekingshouldtallagetheprofitsoftheirowntenants,werenotunwillingthatheshouldtallagelikewisethoseofanorderofmenwhomitwasmuchlesstheirinteresttoprotect。Inthoseignoranttimesitwasnotunderstoodthattheprofitsofmerchantsareasubjectnottaxabledirectly,orthatthefinalpaymentofallsuchtaxesmustfall,withaconsiderableovercharge,upontheconsumers。
ThegainsofalienmerchantswerelookeduponmoreunfavourablythanthoseofEnglishmerchants。Itwasnatural,therefore,thatthoseoftheformershouldbetaxedmoreheavilythanthoseofthelatter。ThisdistinctionbetweenthedutiesuponaliensandthoseuponEnglishmerchants,whichwasbegunfromignorance,hasbeencontinuedfromthespiritofmonopoly,orinordertogiveourownmerchantsanadvantagebothinthehomeandintheforeignmarket。
Withthisdistinction,theancientdutiesofcustomswereimposedequallyuponallsortsofgoods,necessariesaswellasluxuries,goodsexportedaswellasgoodsimported。Whyshouldthedealersinonesortofgoods,itseemstohavebeenthought,bemorefavouredthanthoseinanother?orwhyshouldthemerchantexporterbemorefavouredthanthemerchantimporter?
Theancientcustomsweredividedintothreebranches。Thefirst,andperhapsthemostancientofallthoseduties,wasthatuponwoolandleather。Itseemstohavebeenchieflyoraltogetheranexportationduty。WhenthewoollenmanufacturecametobeestablishedinEngland,lestthekingshouldloseanypartofhiscustomsuponwoolbytheexportationofwoollencloths,alikedutywasimposeduponthem。Theothertwobrancheswere,first,adutyuponwine,which,beingimposedatsomuchaton,wascalledatonnage,and,secondly,adutyuponallothergoods,which,beingimposedatsomuchapoundoftheirsupposedvalue,wascalledapoundage。Intheforty—seventhyearofEdwardIIIadutyofsixpenceinthepoundwasimposeduponallgoodsexportedandimported,exceptwools,wool—fells,leather,andwines,whichweresubjecttoparticularduties。InthefourteenthofRichardIIthisdutywasraisedtooneshillinginthepound,butthreeyearsafterwardsitwasagainreducedtosixpence。ItwasraisedtoeightpenceinthesecondyearofHenryIV,andinthefourthyearofthesameprincetooneshilling。FromthistimetotheninthyearofWilliamIIIthisdutycontinuedatoneshillinginthepound。ThedutiesoftonnageandpoundageweregenerallygrantedtothekingbyoneandthesameActofParliament,andwerecalledtheSubsidyofTonnageandPoundage。TheSubsidyofPoundagehavingcontinuedforsolongatimeatoneshininginthepound,oratfivepercent,asubsidycame,inthelanguageofthecustoms,todenoteageneraldutyofthiskindoffivepercent。Thissubsidy,whichisnowcalledtheOldSubsidy,stillcontinuestobeleviedaccordingtothebookofratesestablishedinthetwelfthofCharlesII。Themethodofascertaining,byabookofrates,thevalueofgoodssubjecttothisdutyissaidtobeolderthanthetimeofJamesI。TheNewSubsidyimposedbytheninthandtenthofWilliamIIIwasanadditionalfivepercentuponthegreaterpartofgoods。TheOne—thirdandtheTwo—thirdSubsidymadeupbetweenthemanotherfivepercentofwhichtheywereproportionableparts。TheSubsidyof1747madeafourthfivepercentuponthegreaterpartofgoods;andthatof1759afifthuponsomeparticularsortsofgoods。Besidesthosefivesubsidies,agreatvarietyofotherdutieshaveoccasionallybeenimposeduponparticularsortsofgoods,inordersometimestorelievetheexigenciesofthestate,andsometimestoregulatethetradeofthecountryaccordingtotheprinciplesofthemercantilesystem。
Thatsystemhascomegraduallymoreandmoreintofashion。
TheOldSubsidywasimposedindifferentlyuponexportationaswellasimportation。Thefoursubsequentsubsidies,aswellastheotherdutieswhichhavebeenoccasionallyimposeduponparticularsortsofgoodshave,withafewexceptions,beenlaidaltogetheruponimportation。Thegreaterpartoftheancientdutieswhichhadbeenimposedupontheexportationofthegoodsofhomeproduceandmanufacturehaveeitherbeenlightenedortakenawayaltogether。Inmostcasestheyhavebeentakenaway。
Bountieshaveevenbeengivenupontheexportationofsomeofthem。Drawbackstoo,sometimesofthewhole,and,inmostcases,ofapartofthedutieswhicharepaidupontheimportationofforeigngoods,havebeengrantedupontheirexportation。OnlyhalfthedutiesimposedbytheOldSubsidyuponimportationaredrawnbackuponexportation:butthewholeofthoseimposedbythelattersubsidiesandotherimpostsare,uponthegreaterpartofgoods,drawnbackinthesamemanner。Thisgrowingfavourofexportation,anddiscouragementofimportation,havesufferedonlyafewexceptions,whichchieflyconcernthematerialsofsomemanufactures。Theseourmerchantsandmanufacturersarewillingshouldcomeascheapaspossibletothemselves,andasdearaspossibletotheirrivalsandcompetitorsinothercountries。Foreignmaterialsare,uponthisaccount,sometimesallowedtobeimporteddutyfree;Spanishwool,forexample,flax,andrawlinenyarn。Theexportationofthematerialsofhomeproduce,andofthosewhicharetheparticularproduceofourcolonies,hassometimesbeenprohibited,andsometimessubjectedtohigherduties。TheexportationofEnglishwoolhasbeenprohibited。Thatofbeaverskins,ofbeaverwool,andofgumSenegahasbeensubjectedtohigherduties。GreatBritain,bytheconquestofCanadaandSenegal,havinggotalmostthemonopolyofthosecommodities。