Look at the subject closely, and you will be satisfied that this is the
true meaning and effect of the sophism we are combating. It is all in
vain; you cannot _give money_ to some members of the community but by
taking it from others. If you desire to ruin the tax-payer, you may do
so. But at least do not banter him by saying, "In order to compensate
your losses, I take from you again as much as I have taken from you
already." To expose fully all that is false in this sophism would be an
endless work. I shall confine myself to three observations. You assert
that the country is overburdened with taxes, and on this fact you found
an argument for the protection of certain branches of industry. But we
have to pay these taxes in spite of protection. If, then, a particular
branch of industry presents itself, and says, "I share in the payment
of taxes; that raises the cost price of my products, and I demand that a
protecting duty should also raise their selling price," what does such
a demand amount to? It amounts simply to this, that the tax should be
thrown over on the rest of the community. The object sought for is to
be reimbursed the amount of the tax by a rise of prices. But as the
Treasury requires to have the full amount of all the taxes, and as the
masses have to pay the higher price, it follows that they have to bear
not only their own share of taxation but that of the particular branch
of industry which is protected. But we mean to protect everybody, you
will say. I answer, in the first place, that that is impossible; and,
in the next place, that if it were possible, there would be no relief.
I would pay for you, and you would pay for me; but the tax must be paid
all the same.
You are thus the dupes of an illusion. You wish in the first instance
to pay taxes in order that you may have an army, a navy, a church,
a university, judges, highways, etc., and then you wish to free from
taxation first one branch of industry, then a second, then a third,
always throwing back the burden upon the masses. You do nothing more
than create interminable complications, without any other result than
these complications themselves. Show me that a rise of price caused
by protection falls upon the foreigner, and I could discover in your
argument something specious. But if it be true that the public pays
the tax before your law, and that after the law is passed it pays for
protection and the tax into the bargain, truly I cannot see what is
gained by it.
Public-domain text, read in full here on John Shaqi.
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