The Sun.
London, England, 1844-01-04 00:00:00

HINTS TOUCHING TAXATION.

• The following hints are written, not for those
who understand the subject, but for those who
do not ; by their friend, W. G.:—
TWO QUESTIONS, WITH ANSWERS.

First—From what source is it that taxes are
paid ?
Secondly—ls a high scale of prices, with
equally high wages, or a low scale of prices, with
equally low wages, best for the labouring people
of England?

ANSWER TO THE FIRST QUESTION.
The source from whence taxes and other such
imposts can be raised, without impoverishing the
people oralienating their property, is those things
which may be very properly termed increase.
This term, increase, is meant to embrace every

thing of the Ibllowing description, beyond our
present and future necessary stock or capital of
such things ; that is to say—all such things as
accrue, from season. to season, through the
bounty of Providence; and every thing which,
from time to time, may be obtained by art and
labour, and which shall be valuable in the esti-
mation of the public, be that what it may. There
is no other source which can supply the demands
of taxation, or other such impositions, for any
considerable length of time, without causing the
alienation of property, or beggaring the great
bulk of the people.
I think it is generally believed, that persons
of property contribute, out of such property,
most largely towards defraying taxation ; but
my view of the case is, that many such persons
scarcely contribute anything towards supporting
that burden. The landowners, who are entitled
to the spontaneous increase upon their lands,
may, from that source of increase, so far
as they can avail themselves of it, be con-
sidered as contributors thereto; but that spon-
taneous increase forms but a small portion of the
increase from the land, raised by means of the
labour and time of others.

If the premises be true, then all those persons
who are entitled to the spontaneous increase
from the land, and all those who labour or apply
their time and talents in raising or procuring in-
crease of the description betbre given, are, as,
one body, the payers of taxes.
The following question has been put to me.
When a rich man drinks wine which is heavily
taxed, does not he pay that tax ? My answer was
—No; not necessarily so. He may lend or ad-
vance the money for a short time, until he can re-
pay himself' from the only tax-paying source in
existence, that is increase. For suppose he be a
non-labouring landlord who drinks the taxed
wine. In the first place, he advances the money
to pay for the taxed wine ; after that, at the
next rent day, he receives, or expects to receive,
from his tenant, that money which shall repay
the expense of the wine. But the tenant is not,
therefore, the ultimate payer for the wine (ex-
cept so far as his own labour is concerned), for
be obtains the money by the sale of increase
raised by labour on the farm. It is therefore
from increase that the tax is paid in this case ;
and they who are most instrumental in producing
such increase are the greatest payers of the tax.

Again, suppose the taxed wine is a
moneyed man, who had lent his money on
Interest to a manufacturer. He, like the land-

lord in the preceding case, first advances the
money to pay for the taxed wine; after that,
at the set day, he receives, or expects to re-
ceive from the borrower, that interest money
which will repay the expense of the wine. But the
borrower is not therefore the ultimate payer for
the wine, (except so far as his own labour and
skill are concerned), for he obtains the interest
money by the sale of increase produced by art
and labour. _lt is therefore from increase in

manufactured articles that the tax is paid in this
case;--and they who are most instrumental in

producing such are the greatest payers
of the tax.

To suppose otherwise; that is, to suppose taxes
were not paid out of increase, but out of capital
or stores, then see the result. The non-labour-
ing owner of land, without :any other property,
who should let his land lie without cultivation at
all, would not be in the receipt of anything
wherewith to pay taxes; and the only means lie
would have of paying taxes would be by giving
up portions of his land, year after year, until the
whole were gone out of his possession.
The moneyed man too; who should not labour
or possess other kind of property, and who
should lock up his money in a chest, would not
be in the receipt of anything wherewith to pay
taxes : and the only means he would have of
paying taxes would be by giving portions of his
money, year atter year, out of his chest, until
the whole were gone.
And now, conceiving that what has been here
stated sufficiently shows that it is from increase
alone we are enabled to pay taxes, rents, interest
of borrowed capital, &c., with this understand-
ing, I shall proceed to answer