In other words, a just taxation must leave all the members of society in precisely the same relation in which it found them. This equality of contribution is the first principle of a just taxation. Such equality can be secured only by a method of direct taxation. Taxes on commodities are, from their very nature, unequal, as they leave it in the choice of the rich man how much he shall contribute to the support of the state; while the man whose whole income must be spent in the purchase of commodities has no such choice. This inequality is aggravated by the necessity, in order to make these taxes productive, of imposing them on necessaries more than on luxuries. Taxes on commodities are further injurious by entailing great expense for the prevention of smuggling, and a needless cost of collection. They could not have been long tolerated but for their quality of affording a convenient method of tax-paying, and for the ignorance of the bulk of the people of their injurious operation. The method of direct taxation which best secures equality is the imposition of a tax on income or on property. There is so much difficulty in ascertaining to the general satisfaction the relative values of incomes held on different tenures, and the necessary inquisition is so odious, that if a tax on the source of incomes can be proved equally equitable, it is preferable, inasmuch as it narrows the province of inquisition. There is no reason to suppose that an equitable graduation of a tax on invested capital is impracticable; and as it would equally affect all incomes derived from this investment (that is, all incomes whatsoever), its operation must be singularly impartial, if the true principle of graduation be once attained. A graduated property tax is free from all the evils belonging to taxes on commodities; while it has not their single recommendation—of favouring the subordinate convenience of the tax-payer. This last consideration will, however, become of less importance in proportion as the great body of tax-payers advances towards that enlightened agreement which is essential to the establishment of a just system of taxation. The grossest violation of every just principle of taxation is the practice of burdening posterity by contracting permanent loans, of which the nation is to pay the interest. The next grossest violation of justice is the transmitting such an inherited debt unlessened to posterity, especially as every improvement in the arts of life furnishes the means of throwing off a portion of the national burdens. The same rule of morals which requires state-economy on behalf of the present generation, requires, on behalf of future generations, that no effort should be spared to liquidate the National Debt. THE END. London: Printed by WILLIAM CLOWES, Duke-street, Lambeth. PREFACE.