6

WHO PAYS YOUR TAXES?

An examination of the leading authorities shows, how-ever, that, though variously expressed, Smith ’s maxims,as far as they go, have “ been generally concurred in bysubsequent writers,” 1 and that their application has beenno less generally neglected.

These principles have recently been formulated, as fol-lows, viz.:

1. The most direct taxation is the best, because itgives to the real payers of taxes a conscious and directpecuniary interest in honest and economical government.

2. Mortgages and capital should be exempt from taxa-tion, because taxes on such capital tend to drive it away,to put a premium on dishonesty, and to discourage in-dustry.

3. Real estate should bear the main burden of taxa-tion, because such taxes can be most easily, cheaply, andcertainly collected, and because they bear least heavilyon the farmer and the worker.

These unite all the canons stated by Adam Smith , andfor a practical programme appear to meet every require-ment.

The laws are stated by Mr. George with axiomaticforce, as follows :

The best tax by which public revenues can be raised isevidently that which will closest conform to the followingconditions:

1 Mill’s “ Principles of Political Economy,” p. 483. See also Fawcett’s“ Manual of Political Economy,” sixth ed., 1883, p. 516.