71K3 I’ll K XATUUE AND CAUSES OF

pense which they might have cost in building, a tax of threeor four shillings in the pound, joined with other taxes, wouldruin almostall the rich and great families of this, and, I believe,of every other civilized country. Whoever will examinewith attention the different town and country houses of someof the richest and greatest families in this country, will findthat, at the rate of only six and a half or seven percent, uponthe original expense of building, their house-rent is nearlyequal to the whole neat rent of their estates. It is the accu-mulated expense of several successive generations, laid outupon ob jects of great beauty and magnificence, indeed; but, inproportion to what they cost, of very small exchangeable value.*

Ground-rents are a still more proper subject of taxationthan the rent of houses. A tax upon ground-rents wouldnot raise the rents of houses. It would fall altogether uponthe owner of the ground-rent, who acts always as a mono-polist, and exacts the greatest rent which can be got for theuse of the ground. More or less can be got for it accordingas the competitors happen to be richer or poorer, or can af-ford to gratify their fancy for a particular spot of ground ata greater or smaller expense. In every country the greatestnumber of rich competitors is in the capital, and it is thereaccordingly that the highest ground-rents are always to befound. As the wealth of those competitors would in norespect be increased by a tax upon ground-rents, they wouldnot probably be disposed to pay more for the use of theground. Whether the tax was to be advanced by the inha-bitant, or by the owner of the ground, would be of little im-portance. The more the inhabitant was obliged to pay forthe tax, the less he would incline to pay for the ground; sothat the final payment of the tax would fall altogether uponthe owner of the ground-rent. The ground-rents of unin-habited houses ought to pay no tax.

Both ground-rents and the ordinary rent of land are aspecies of revenue which the owner, in many cases, enjoyswithout any care or attention of his own. Though a part ofthis revenue should be taken from him in order to defraythe expenses of the state, no discouragement will thereby begiven to any sort of industry. The annual produce of theland and labour of the society, the real wealth and revenueof the great body of the people, might be the same after

• Since the finst publication of thii biok, a tat neaHy uj.on the above-mentioned prin-ciple* ha* been impowd.