INTRODUCTION.
ALL taxation is an evil. Moralists may talk of duties on con- sumption acting as a sumptuary law, and diminishing the luxuries (of the poor): Economists may tell us that moderate taxes induce habits of economy, and stimulate invention : but let ingenuity and philosophy reason as they will, an impost, under any circumstances, somewhat interferes with the sacred distinction of meum and tuum. Under all disguises, and with every admission for the necessity of its existence, it transfers that wealth on which I have an unques- tioned claim, to others whose services may be very deserving, but whose title to my money is by no means so clear. Even if Dr. CHALMERS'S opinion, that all taxes eventually fall upon landlords, were an established truism, the nati consumere fruges might opine that they possessed as good a title to their rents as could be shown by any other class. • But—passing to sober reality—heavy taxation, and the evils which flow from it, have been among the primary causes of the destruction of empires. The Rebellion in England—the Revolu- tion of France—the decline of Holland and Spain—the decay of Venice—were greatly accelerated by the amount of the public burdens, or by the injudicious, partial, and oppressive manner in which they were imposed. Those who are acquainted with the effects produced by the Milan and Berlin Decrees, or those who have any knowledge of the old French system of taxation as car- ried into practice under the Empire, will readily allow that the prohibitive policy and oppressive exactions of NAPOLEON mainly contributed to his overthrow.
But if heavy burdens, oppressively imposed, be thus fatal to states—if equal and judicious taxation be at all times important —how much more important is it in countries financially circum- stanced as ours. The annual Public Revenue is at present nearly fifty-one millions. Of this sum, as we explained in our Second Sup- plement, more than twenty-eight millions are mortgaged to defray the interest. of the Debt. Neatly seven millions are paid for Dead- weight charges of various descriptions, which, however improperly granted by former Parliaments, will probably never be opened up unless in a case of the last necessity. There remains then an expenditure of but little more than fifteen millions and a half on which any immediate retrenchment can be effected. If this re- trenchment amounted to one third of the effective expenditure, nearly forty-six millions of revenue must still be raised : but if the whole expense for the annual service were got rid of, thirty- live millions would still have to be drawn from the public by taxa- tion. When so large a deduction must be made from the general income of the community, it becomes of the last importance that it should be made equally, and in the most judicious manner; so as not only to make every one contribute, as far as is practicable, in a due proportion to his means, but not even to increase the weight of an equal burden by the injudicious mode of placing it. To secure these benefits—to apply such reductions as may be ef- fected to the best advantage—to modify judiciously what we can, not remove, and to commute, if commutation be necessary, the most unequal and most mischievous for the fairest and least injurious kind of tax—some general knowledge of the principles . of taxation, and some acquaintance with the practical bearing or particular kinds of taxes, as well as a perfect comprehension of our present fiscal system, seem indispensable. These desiderata. we shall aim at supplying in the present Supplement. The va- riety, extent, and complexity of the subject, may render it conve- nient to give at the outset a brief account of the subjects we in- tend to touch upon, and the order in which we shall take them. They may be enumerated as follows : 1. We shall give a brief and practical exposition of the PRIN- CIPLES of TAXATION, and a GENERAL ACCOUNT OF MIS SOURCES OF THE PUBLIC REVENUE. In connexion with this branch of the subject, we shall endeavour to exhibit the na- ture and extent of our PROTECTIVE SYSTEM, the income which it yields to the State, and the expense to which it sub,- jects the public. We shall also consider the COST OF COL- LECTING THE REVENUE, and throw out several, suggestions as to the practicability of some extensive reductions in this branch of the Public Expenditure.
2. After the masses of the subject are thus disposed of, we shalt exhibit an ANALYSIS, or to speak to the readers of the Spec- tator in perhaps a more intelligible manner, an ANATOMY. OF EACH GREAT BRANCE OF TAXATION. Iu this part of our undertaking we shall investigate the nature of different classes, of duties, or, where it is of sufficient importance, of a single. duty, with a view to discover upon what class of society the. burden is chiefly placed ; tho character of the fund, whether. income arising from property, profits, or wages, from which_ the tax is discharged; and, if it be a duty on a commodity. the extent of its influence upon industry. In conducting-, this inquiry, the greatest space will of course be devoted tot the most important imposts. The Assessed Taxes will there- fore be investigated at a length which the popular feeling against them, and the amount of revenue they yield, seem Ws require.. This detailed examination will have supplied the data for aViene of the Actual Pressure of Taxation upon the Poor, the Middle Classes, and the Rich.
Having thus exhibited TAXATION As IT IS, we shall 3. Proceed to consider TAXATION AS IT OUGHT TO BE. In this section, we shall consider several modes of raising the Sup- plies from new taxes of a less objectionable nature than. many of those now existing,—and amongst others, the justice, the policy, but the practical difficulty of a graduated Pro- perty-tax, will undergo a minute investigation. And we shall finally, in our REFORMED BUDGET exhibit a plan by which the more striking evils of our present fiscal system smimayplbeer bas. got rid& d of, and our taxation placed upon a sound an
