14 March 1804.

III. 7, 8, 9

K Political Economy - Finance

1

1. Financial operations 1. acceleration of increase 2. prevention of decrease.

p.1.

2. Cause of decrease - Taxes. p.1.

3. A tax if it operates directly is a discouragemt to the production of the

article taxed, an encouragement to rival articles. p.1.

4. Hence the care taken to tax ourselves rather than foreigners. p.2.

5. Operations of Finance two. Receipt of Disbursement. p.3.

6. Disbursement is - 1. at large 2. in discharge of Loan. p.3.

7. Receipt and expenditure are - 1. of money 2. or articles of service. p.3.

8. Rule to estimate the eligibility of any measure - Compare the benefit of it

with the burthen of the tax to raise the money for it. p.3.

9. Comfort is diminished by taxes in proportion as they are taken from /out of/

Income.

10. Future wealth is diminished by taxes in proportion as they are taken from

capital. p.4.

11. Taxes therefore diminish /retard/ growing wealth when taken - 1. from

capital. 2. from income part of which would otherwise have been laid out to be

employed as capital. p.4.

12. War taxes are to their amount so much taken from growing wealth, minus the

profit on the purchased articles. p.5.

13. By discharge of Debt the Annuitants give up their interest, & the

community is exonerated from paying it - those who receive it give up nothing in

return for it. p.{5}/6/.

14. Encrease of wealth by discharge of debt has been beyond comparison greater

than by any direct measures. p.6.

15. Indirect taxes are limited by smuggling, the consequence of the imperfection

of the laws. p.7.

16. Taxes on property direct, on consumption indirect. 8.

17. Taxes on capital are to their whole amount taken from growing wealth - on

Income to the amount of the saving only. p.8.

18 Direct taxes are borne unequally

19. Advantages of obtaining foreign capital in Loans - 1. at borrowing it

diminishes the consumption of capital. 2. at paying off it diminishes the

burthen on fixed Incomists. p.9.

20 With as good reason might men dislogise Bakers, as foreign Annuitants.

19(c) In so far as the purchase of Annuities by foreigners has been by the

materials of money it has been mischievous by producing the indirect Income

Tax.