28 Aug. 1801

E

Polit. Economy

Method

Finance

4

91

Taxes taken from present enjoyment diminish comfort in proportion as they are

paid by each contributor out of that portion of his wealth which had it not been

for the tax would all of it have been spent within the year as money is spent by

a man who is said to spend his income. /in the way of maintenance./

Taxes diminish future wealth in proportion as they take from capital: viz: by

being taken from that portion of a man's money the whole of which had it not

been for the tax would have been spent on articles by the purchase of which real

capital in increased: or even by being taken from that portion of his money

which is expended in the way of expenditure of income /maintenance/ in so far as

the money had it not been taken from him by the taxes would have been expended

/employ'd in the shape of pecuniary capital/ of the sort of those by which real

capital is encreased.

Taxes therefore take from growing wealth 1. in as far as they are levied on

capital viz. of money destined for employment in the shape of capital, or on

goods or labour of which real capital is composed. 2. in as far as they are

levied on the income or expenditure in the way of income of men who lay up money

to be employ'd as capital, or would have laid it up had it not been for the

tax.