[clxvii. 235]

1821 Jan 13

Rid Yourselves

Part 1

Appendix

'.2

Lett. 3. Profit none

31 March 1822. Discarded from Rid Yourselves

Quere whether any thing here not inserted -

Letter 3. Profit none. Consult this on occasion of Observat n on the Prohibitive System.

Taxes are commonly divided into direct and indirect taxes. The division is not /perhaps not altogether/ exhaustive or the expression is not very characteristic: /it must be taken as it stands/ for the present such as it is known it may without considerable error be on the present occasion applied to the present purpose. In both cases there is some object of possession for the occupation of which a man is regarded as paying: in the case of the direct tax it is paid to the tax-gatherer by the occupier himself: in the case of the indirect tax it is paid to the Collector by some person of whom the occupier purchases it.

Another sort of tax there is which is not only indirect but still more inidirect than the one commonly so called as above: that being called indirect of the first order, thus, if it be termed indirect, may be termed indirect of the second order.

Such is the nature of the sort of prohibition which of its immediate effects - its effects with relation to the augmentation of the revenue in the hands of government be considered may be termed a barren one: in this case one set of men are prohibiting from dealing in this or that way in relation to a certain article, that by dealing in it without such competition another set may obtain a pecuniary advantage. The intended advantage is it actually received? /obtained?/ In proportion as it is received /so obtained/ the effect of it is the same as would be that of a tax, the produce of which were instead of being conveyed into the public treasury, distributed among the hands employed in the collection of it. Barren it certainly is with relation to the public revenue: productive it may be or unproductive with relation to the income of the class of persons /individuals/ for whose benefit it is intended.