See also:

• TAXATION
• TAXATION (from " tax," derived, through the French, from Lat. taxare, to appraise, which again is connected with the same root as tangere, to touch)

One of the most usual divisions is into See also:

• DIRECT

This See also:

• DIVISION (from Lat. dividere, to break up into parts, separate)

Where they are heavy, as, for instance, with the French registration duties on the See also:

• TRANSFER (from Lat. transferre, to bear across, carry over)

Other general classifications of taxes have also been attempted, as, for instance, taxes upon real property, and taxes upon personal property, and so on. Classification is indeed only too easy. Applying a characteristic See also:

• COMMON

It was intended as a temporary tax for war purposes only, and was repealed in 1802, but was re-imposed when the war recommenced in 1803, with the limit of See also:

• ABATEMENT (derived through the French abattre, from the Late Latin battere, to beat)

Although it is called a direct tax, the method of See also:

• LEVY (Fr. levee, from lever, Lat. levare, to lift, raise)
• LEVY, AMY (1861–1889)
• LEVY, AUGUSTE MICHEL (1844– )

Of this in the British See also:

• SYSTEM

In the classification of the revenue in English budgets and in official returns these charges are deliberately separated from the above sources of the revenue described as taxes, and classed with " revenue derived from other sources." The correctness of this See also:

• PROCEDURE (Fr. procedure, from Lat. procedere, to go for-ward)

The proceeding appears to be quite incorrect, whatever excuse there may be for treating revenue like that of the post office as non-tax revenue. Fees levied on proceedings in courts of justice are not only taxes, but taxes of the worst sort. They received the special condemnation of See also:

• JEREMY, EPISTLE OF

Local Taxation.—Besides the above revenue from taxation for imperial purposes, large amounts are raised for local purposes. The local authorities derive a large income from private property, and from monopolies such as See also:

• WATER

The confusion has been further increased of See also:

• LATE

The remarks already made on the corresponding taxes levied for imperial purposes of course apply to these. Exceptionally, it may be added, as regards the licence taxes, which occupy quite an inferior place in the British system of taxation for imperial purposes, that the question whether some of them are not really direct in their incidence on the first person charged may also be raised, although they are classed with indirect taxes. Many of the licences are those of brewers, distillers and publicans, and others in trade, and are paid out of the general profits of the business, so that they can hardly be passed on to the consumers, while other licences are for See also:

• SHOOTING

The starting-point of discussions as to incidence of taxation is a classical passage in Adam Smith's See also:

• WEALTH

The whole burden of taxation, it is maintained, should fall equally upon classes and individuals as far as possible, and, if necessary, taxes falling equally upon special sources of private revenue should be balanced against each other in order to obtain the desired result. Along with this view has arisen the question whether the burden of taxation should not be progressive—the proportion of the sum taken by the state from the tax-payers increasing with the wealth of the individual; because ability to pay taxes is assumed to be not in proportion to, but to increase with the size of, the income. What See also:

• OPINION (Lat. opinio, from opinari, to think)

Even here, however, formidable difficulties are presented. The payers of income tax, unfortunately, are not one class but many, and although the rate of duty is the same, the See also:

• DEFINITION (Lat. definitio, from de-finire, to set limits to, describe)

All this is evident on a view of imperial taxation alone. In studying equality, moreover, local taxation must be brought into view, with even more impracticable differences of opinion as to the real incidence of the taxation. The moment rates are brought into question it is seen at once how impossible it would be to establish equality among tax-payers, when owners on one See also:

• SIDE
• SIDE (mod. Eski Adalia)

But such progression may arise in a different way and on different principles from those proposed in See also:

• DEFENCE
• DEFENCE (Lat. defendere, to defend)

On this ground, in an account of taxation proper, one might avoid discussing altogether the question of irregular or illegitimate taxation. But the subject is of too much popular interest, perhaps, to be passed over altogether. Generally, then, it may be affirmed that taxation in its essential nature cannot be thought of as a good instrument for promoting trade and the See also:

• ADVANCEMENT

Politically one might differ from him, but economists as such must either be silent when political reasons are alleged for taxes that are against fundamental maxims, or must be content to point out the cost of the taxes in order that the communities concerned may decide whether the object in view is obtainable by means of the taxation, and is worth the price. A great deal has been said as to taxes termed " countervailing duties," which are called for in order to defend free trade itself against the protectionist bounties of foreign governments. Such duties are obviously taxes outside the limits to be considered in a question of taxation proper. They are to be imposed for other purposes than revenue. As to the claim for them that they will restore free trade conditions by nullifying the foreign bounties which have caused a disturbance of trade, this is really in the nature of a political reason. A country which is so devoted to free trade that it not only practises free trade itself but endeavours to convert others by nullifying their protectionist See also:

• MEASURES

Per contra the tax was wholly unfelt, a shilling a quarter only affecting an See also:

• AVERAGE

(2) A state which in ordinary times appropriates one-tenth or some less proportion of aggregate individual incomes is much stronger relatively than a state absorbing one-fourth, one-third, or even a higher proportion. It has much larger resources, which would beavailable if time were given to develop them. (3) When the proportion becomes one-tenth or less it is doubtful whether the state can do best for its subjects by making the proportion still lower, that is, by abandoning one tax after another, or whether equal or greater advantage would not be gained by using the revenue for wise purposes under the direction of the state, such as great See also:

• WORKS