A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
To the objection that it was unjust to place the burden of taxation
upon the shoulders of a single class of the nation,[101] instead of
distributing it equally among all classes, the Physiocrats replied that
the statesman’s ideal was not equal taxation, but the complete abolition
of all taxation. This could only be achieved by taxing the “net product.”
Suppose that we agree that the taxes should be paid by some other class.
The question then is to determine what class of the community should be
chosen.
Shall we say that the farmer must pay them? But after deducting the “net
product” what remains for the farmer is just the bare equivalent of his
original outlay. Consequently, if we take 600 millions from the farmers
by way of taxation there will be so much less capital for the land,
resulting in a smaller gross product the following year,[102] unless they
agitate for a reduction of 600 millions in their rents. If they succeed
this will leave the proprietors in the position of having paid over
the 600 millions to the State. But we must also reckon the losses and
friction incurred in every deviation from the “natural order.” Suppose
we decide that the sterile classes should pay the taxes. This class is
_ex hypothesi_ sterile—that is, it produces the exact equivalent of what
it consumes. To take 600 millions from this class is tantamount to a
reduction of its consumption by 600 millions, or an equivalent limitation
of its purchases of raw material. The result would be a diminished
product in the future, unless the industrial classes succeeded in
increasing prices by an equivalent amount. Even in that case the landed
proprietors will have to bear the brunt of it: firstly, they will have
to reduce their own consumption, and secondly, their tenants’, whose
efficiency will thereby be impaired.[103]
Public-domain text, read in full here on John Shaqi.
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