tors to no other inconveniency, besides always | two different circumstances; the demand for the unavoidable one of paying the tax. labour, and the ordinary or average price In France, the stamp duties are not much of provisions. The demand for labour, accomplained of. Those of registration, which cording as it happens to be either increasing they call the Controle, are. They give oc- stationary or declining; or to require an incasion, it is pretended, to much extortion in creasing, stationary, or declining population; the officers of the farmers-general who collect regulates the subsistence of the labourer, and the tax, which is in a great measure arbitrary determines in what degree it shall be either and uncertain. In the greater part of the liberal, moderate, or scanty. The ordinary libels which have been written against the average price of provisions determines the present system of finances in France, the quantity of money which must be paid to the abuses of the controle make a principal article. Uncertainty, however, does not seem to be necessarily inherent in the nature of such taxes. If the popular complaints are well founded, the abuse must arise, not so much from the nature of the tax as from the want of precision and distinctness in the words of the edicts or laws which impose it. workman, in order to enable him, one year with another, to purchase this liberal, moder. ate, or scanty subsistence. While the demand for the labour and the price of provisions, therefore, remain the same, a direct tax upon the wages of labour can have no other effect, than to raise them somewhat higher than the tax. Let us suppose, for example, that, in a The registration of mortgages, and in ge- particular place, the demand for labour and neral of all rights upon immoveable property, the price of provisions were such as to render as it gives great security both to creditors and ten shillings a-week the ordinary wages of lapurchasers, is extremely advantageous to the bour; and that a tax of one-fifth, or four shil public. That of the greater part of deeds of lings in the pound, was imposed upon wages. other kinds, is frequently inconvenient and If the demand for labour and the price of even dangerous to individuals, without any provisions remained the same, it would still advantage to the public. All registers which, be necessary that the labourer should, in that it is acknowledged, ought to be kept secret, place, earn such a subsistence as could be ought certainly never to exist. The credit bought only for ten shillings a-week; or of individuals ought certainly never to depend that, after paying the tax, he should have ten upon so very slender a security, as the pro- shillings a-week free wages. But, in order city and religion of the inferior officers of to leave him such free wages, after paying evenue. But where the fees of registration such a tax, the price of labour must, in that have been made a source of revenue to the place, soon rise, not to twelve shillings asovereign, register-offices have commonly week only, but to twelve and sixpence; that been multiplied without end, both for the is, in order to enable him to pay a tax of onedeeds which ought to be registered, and for fifth, his wages must necessarily soon rise, chose which ought not. In France there are not one-fifth part only, but one-fourth. several different sorts of secret registers. Whatever was the proportion of the tax, the This abuse, though not perhaps a necessary, wages of labour must, in all cases rise, not it must be acknowledged, is a very natural only in that proportion, but in a higher proeffect of such taxes. portion. If the tax for example, was onetenth, the wages of labour must necessarily soon rise, not one-tenth part only, but oneeighth. Such stamp duties as those in England upon cards and dice, upon newspapers and periodical pamphlets, &c. are properly taxes upon consumption; the final payment falls A direct tax upon the wages of labour, upon the persons who use or consume such therefore, though the labourer might, perhaps, commodities. Such stamp duties as those pay it out of his hand, could not properly be upon licences to retail ale, wine, and spiritous said to be even advanced by him; at least if liquors, though intended, perhaps, to fall up- the demand for labour and the average price on the profits of the retailers, are likewise of provisions remained the same after the tax finally paid by the consumers of those liquors. as before it. In all such cases, not only the Such taxes, though called by the same name, tax, but something more than the tax, would and levied by the same officers, and in the in reality be advanced by the person who imsame manner with the stamp duties above mediately employed him. The final payment mentioned upon the transference of property, would, in different cases, fall upon different are, however, of a quite different nature, and persons. The rise which such a tax might fall upon quite different funds. occasion in the wages of manufacturing labour would be advanced by the master ma. nufacturer, who would both be entitled and obliged to charge it, with a profit, upon the price of his goods. The final payment of this THE wages of the inferior classes of work-rise of wages, therefore, together with the admen, I have endeavoured to show in the first ditional profit of the master manufacturer book are everywhere necessarily regulated by would fall upon the consumer. The rise which ART. III.-Taxes upon the Wages of Labour. such a tax might occasion in the wages of of finances which was begun in 1748, a very country labour would be advanced by the far- heavy tax is imposed upon the industry of ar mer, who, in order to maintain the same num- tificers. They are divided into four classes. ber of labourers as before, would be obliged The highest class pay a hundred florins & to employ a greater capital. In order to get year, which, at two-and-twenty pence half. back this greater capital, together with the penny a-florin, amounts to L.9: 7:6. The ordinary profits of stock, it would be neces-second class are taxed at seventy; the third at sary that he should retain a larger portion, or, fifty; and the fourth, comprehending artificers what comes to the same thing, the price of a in villages, and the lowest class of those in larger portion, of the produce of the land, towns, at twenty-five florins." and, consequently, that he should pay less The recompence of ingenious artists, and rent to the landlord. The final payment of of men of liberal professions, I have endea this rise of wages, therefore, would, in this voured to show in the first book, necessarily case, fall upon the landlord, together with the keeps a certain proportion to the emoluments additional profit of the farmer who had ad. of inferior trades. A tax upon this recomvanced it. In all cases, a direct tax upon the pence, therefore, could have no other effect wages of labour must, in the long-run, occa- than to raise it somewhat higher than in pro sion both a greater reduction in the rent of portion to the tax. If it did not rise in this land, and a greater rise in the price of manu- manner, the ingenious arts and the liberal factured goods than would have followed from professions, being no longer upon a level the proper assessment of a sum equal to the with other trades, would be so much deserted, produce of the tax, partly upon the rent of that they would soon return to that level. land, and partly upon consumable commodities. The emoluments of offices are not, like those of trades and professions, regulated by If direct taxes upon the wages of labour the free competition of the market, and da have not always occasioned a proportionable not, therefore, always bear a just proportion rise in those wages, it is because they have to what the nature of the employment requires. generally occasioned a considerable fall in the They are, perhaps, in most countries, higher demand of labour. The declension of in- than it requires; the persons who have the dustry, the decrease of employment for the administration of government being generally poor, the diminution of the annual produce disposed to regard both themselves and their of the land and labour of the country, have immediate dependents, rather more than engenerally been the effects of such taxes. In ough. The emoluments of offices, therefore, consequence of them, however, the price of can, in most cases, very well bear to be taxed. labour must always be higher than it other- The persons, besides, who enjoy public of wise would have been in the actual state of fices, especially the more lucrative, are, in all the demand; and this enhancement of price, together with the profit of those who advance it, must always be finally paid by the landlords and consumers. countries, the objects of general envy; and a tax upon their emoluments, even though it should be somewhat higher than upon any other sort of revenue, is always a very popu A tax upon the wages of country labour lar tax. In England, for example, when, by does not raise the price of the rude produce the land-tax, every other sort of revenue was of land in proportion to the tax; for the supposed to be assessed at four shillings in same reason that a tax upon the farmer's the pound, it was very popular to lay a real profit does not raise that price in that propor tion. tax of five shillings and sixpence in the pound upon the salaries of offices which exceeded a hundred pounds a-year; the pensions of the younger branches of the royal family, the pay of the officers of the army and navy, and a few others less obnoxious to envy, excepted. There are in England no other direct taxes Their wages are com- upon the wages of labour. Note 50. Absurd and destructive as such taxes are, however, they take place in many countries. In France, that part of the taille which is charged upon the industry of workmen and day-labourers in country villages, is properly a tax of this kind. puted according to the common rate of the district in which they reside; and, that they fall indifferently upon every different Species of Revenuc. may be as little liable as possible to any over- ART. IV.-Tares which it is intended should charge, their yearly gains are estimated at no more than two hundred working days in the The tax of each individual is varied year.* from year to year, according to different cir. cumstances, of which the collector or the commissary, whom the intendant appoints to assist him, are the judges. In Bohemia, in consequence of the alteration in the system Memoires concernant les Droits, &c. tom. u. p. 108. THE taxes which it is intended should fall indifferently upon every different species of revenue, are capitation taxes, and taxes upor consumable commodities. These must be paid indifferently, from whatever revenue the con tributors may possess; from the rent of their land, from the profits of their stock, or from the wages of their labour. Capitation Taxes. CAPITATION taxes, if it is attempted to proportion them to the fortune or revenue of each contributor, become altogether arbitrary. The state of a man's fortune varies from day to day; and, without an inquisition, more intolerable than any tax, and renewed at least once every year, can only be guessed at. His assessment, therefore, must, in most cases, depend upon the good or bad humour of his assessors, and must, therefore, be altogether arbitrary and uncertain. Capitation taxes, if they are proportioned, not to the supposed fortune, but to the rank of each contributor, become altogether unequal; the degrees of fortune being frequently unequal in the same degree of rank. Such taxes, therefore, if it is attempted to render them equal, become altogether arbitrary and uncertain; and if it is attempted to render them certain and not arbitrary, become altogether unequal. Let the tax be light or heavy, uncertainty is always a great grievance. In a light tax, a considerable degree of inequality may be supported; in a heavy one, it is altogether intolerable. the superior courts of justice, the officers of the troops, &c. are assessed in the first manner. The inferior ranks of people in the provinces are assessed in the second. In France, the great easily submit to a considerable degree of inequality in a tax which, so far as it affects them, is not a very heavy one; but could not brook the arbitrary assessment of an intendant. The inferior ranks of people must, in that country, suffer patiently the usage which their superiors think proper to give them. If In England, the different poll-taxes never produced the sum which had been expected from them, or which it was supposed they might have produced, had they been exactly levied. In France, the capitation always produces the sum expected from it. The mild government of England, when it assessed the different ranks of people to the poll-tax, contented itself with what that assessment happened to produce, and required no compensation for the loss which the state might sustain, either by those who could not pay, or by those who would not pay (for there were many such), and who, by the indulgent execution of the law, were not forced to pay. The more severe government of France assesses upon each generality a certain sum, which the intendant must find as he can. any province complains of being assessed too high, it may, in the assessment of next year, In the different poll-taxes which took place obtain an abatement proportioned to the overin England during the reign of William III. charge of the year before; but it must pay in the contributors were, the greater part of the mean time. The intendant, in order to them, assessed according to the degree of be sure of finding the sum assessed upon his their rank; as dukes, marquises, earls, vis- generality, was empowered to assess it in a counts, barons, esquires, gentlemen, the el- larger sum, that the failure or inability of some dest and youngest sons of peers, &c. All of the contributors might be compensated by shop-keepers and tradesmen worth more than the overcharge of the rest; and till 1765, the three hundred pounds, that is, the better sort fixation of this surplus assessment was left alto of them, were subject to the same assessment, gether to his discretion. In that year, indeed, how great soever might be the difference in the council assumed this power to itself. In their fortunes. Their rank was more consi- the capitation of the provinces, it is observed dered than their fortune. Several of those by the perfectly well informed author of the who, in the first poll-tax, were rated accord- Memoirs upon the Impositions in France, the ing to their supposed fortune, were afterwards rated according to their rank. Serjeants, attorneys, and proctors at law, who, in the first poll-tax, were assessed at three shillings in the pound of their supposed income, were afterwards assessed as gentlemen. In the assessment of a tax which was not very heavy, Capitation taxes, so far as they are levied a considerable degree of inequality had been upon the lower ranks of people, are direct found less insupportable than any degree of taxes upon the wages of labour, and are atuncertainty. tended with all the inconveniencies of such taxes. proportion which falls upon the nobility, and upon those whose privileges exempt them from the taille, is the least considerable. The largest falls upon those subject to the taille, who are assessed to the capitation at so much a-pound of what they pay to that other tax. In the capitation which has been levied in France, without any interruption, since the Capitation taxes are levied at little ex beginning of the present century, the highest pense; and, where they are rigorously exacted, orders of people are rated according to their afford a very sure revenue to the state. It is rank, by an invariable tariff; the lower orders upon this account that, in countries where the of people, according to what is supposed to ease, comfort, and security of the inferior be their fortune, by an assessment which va- ranks of people are little attended to, capitaries from year to year. The officers of the tion taxes are very common. It is in general, king's court, the judges, and other officers in however, but a small part of the public reve nue, which, in a great empire, has ever been life; and custom nowhere renders it indecent drawn from such taxes; and the greatest sum to live without them. which they have ever afforded, might always have been found in some other way much more convenient to the people. Note 51. Taxes upon Consumable Commodities. As the wages of labour are everywhere re gulated, partly by the demand for it, and partly by the average price of the necessary articles of subsistence; whatever raises this average price must necessarily raise those wages; so that the labourer may still be able to purchase that quantity of those necessary THE impossibility of taxing the people, in articles which the state of the demand for laproportion to their revenue, by any capitation, bour, whether increasing, stationary, or deseems to have given occasion to the invention clining, requires that he should have. A tar of taxes upon consumable commodities. The upon those articles necessarily raises their state not knowing how to tax, directly and price somewhat higher than the amount of proportionably, the revenue of its subjects, the tax, because the dealer, who advances the endeavours to tax it indirectly by taxing their tax, must generally get it back, with a profit. expense, which, it is supposed, will, in most Such a tax must, therefore, occasion a rise in cases, be nearly in proportion to their reve- the wages of labour, proportionable to this nue. Their expense is taxed, by taxing the rise of price. consumable commodities upon which it is laid out. Consumable commodities are either necessaries or luxuries. It is thus that a tax upon the necessaries of life operates exactly in the same manner as a direct tax upon the wages of labour. The labourer, though he may pay it out of his hand, By necessaries I understand, not only the cannot, for any considerable time at least, be commodities which are indispensibly neces- properly said even to advance it. It must alsary for the support of life, but whatever the ways, in the long-run, be advanced to him by custom of the country renders it indecent for his immediate employer, in the advanced state creditable people, even of the lowest order, to of wages. His employer, if he is a manufac be without. A linen shirt, for example, is, turer, will charge upon the price of his goods strictly speaking, not a necessary of life. The the rise of wages, together with a profit, Greeks and Romans lived, I suppose, very so that the final payment of the tax, together comfortably, though they had no linen. But with this overcharge, will fall upon the conin the present times, through the greater part sumer. If his employer is a farmer, the final of Europe, a creditable day-labourer would payment, together with a like overcharge, will be ashamed to appear in public without a li- fall upon the rent of the landlord. nen shirt, the want of which would be sup- It is otherwise with taxes upon what I call posed to denote that disgraceful degree of luxuries, even upon those of the poor. The poverty, which, it is presumed, nobody can rise in the price of the taxed commodities, will well fall into without extreme bad conduct. not necessarily occasion any rise in the wages Custom, in the same manner, has rendered of labour. A tax upon tobacco, for example, leather shoes a necessary of life in England. though a luxury of the poor, as well as of The poorest creditable person, of either sex, the rich, will not raise wages. Though it would be ashamed to appear in public with- is taxed in England at three times, and in out them. In Scotland, custom has rendered France at fifteen times its original price, those them a necessary of life to the lowest order high duties seem to have no effect upon the of men; but not to the same order of women, wages of labour. The same thing may be who may, without any discredit, walk about said of the taxes upon tea and sugar, which, barefooted. In France, they are necessaries in England and Holland, have become luxu neither to men nor to women; the lowest ries of the lowest ranks of people; and of rank of both sexes appearing there publicly, those upon chocolate, which, in Spain, is said without any discredit, sometimes in wooden to have become so. shoes, and sometimes barefooted. Under ne- The different taxes which, in Great Britain, cessaries, therefore, I comprehend, not only have, in the course of the present century, those things which nature, but those things been imposed upon spiritous liquors, are not which the established rules of decency have rendered necessary to the lowest rank of people. All other things I call luxuries, without meaning, by this appellation, to throw the smallest degree of reproach upon the temperate use of them. Beer and ale, for example, in Great Britain, and wine, even in the wine countries, I call luxuries. A man of any rank may, without any reproach, abstain totally from tasting such liquors. Nature does not render them necessary for the support of supposed to have had any effect upon the wages of labour. The rise in the price of porter, occasioned by an additional tax of three shillings upon the barrel of strong beer, has not raised the wages of common labour in London. These were about eighteen pence or twenty pence a-day before the tax, and they are not more now. The high price of such commodities does See book i. chap. & not necessarily diminish the ability of the in- | price of manufactured goods; and always ced price of such manufactures as are real In Great Britain, the principal taxes upon the necessaries of life, are those upon the four commodities just now mentioned, salt, leather, soap, and candles. Any rise in the average price of necessaries, Salt is a very ancient and a very universal unless it be compensated by a proportionable subject of taxation. It was taxed among the rise in the wages of labour, must necessarily Romans, and it is so at present in, I believe, diminish, more or less, the ability of the poor every part of Europe. The quantity annuto bring up numerous families, and, conse-ally consumed by any individual is so small, quently, to supply the demand for useful labour; whatever may be the state of that de. mand, whether increasing, stationary, or declining; or such as requires an increasing, stationary, or declining population. and may be purchased so gradually, that nobody, it seems to have been thought, could feel very sensibly even a pretty heavy tax upon it. It is in England taxed at three shillings and fourpence a bushel; about three times Taxes upon luxuries have no tendency to the original price of the commodity. In some raise the price of any other commodities, ex- other countries, the tax is still higher. Leathcept that of the commodities taxed. Taxes er is a real necessary of life. The use of upon necessaries, by raising the wages of la- linen renders soap such. In countries where bour, necessarily tend to raise the price of all the winter nights are long, candles are a nemanufactures, and consequently to diminish cessary instrument of trade. Leather and the extent of their sale and consumption. soap are in Great Britain taxed at three halfTaxes upon luxuries are finally paid by the pence a-pound; candles at a penny; taxes consumers of the commodities taxed, with- which, upon the original price of leather, may out any retribution. They fall indifferently amount to about eight or ten per cent.; upon upon every species of revenue, the wages of that of soap, to about twenty or five-andlabour, the profits of stock, and the rent of twenty per cent.; and upon that of candles land. Taxes upon necessaries, so far as they to about fourteen or fifteen per cent.; taxes affect the labouring poor, are finally paid, which, though lighter than that upon salt, partly by landlords, in the diminished rent of are still very heavy. As all those four comtheir lands, and partly by rich consumers, modities are real necessaries of life, such whether landlords or others, in the advanced heavy taxes upon them must increase some |