188 ADAM SMITH. 



must take it from the interest, if lie does not either raise 

 his prices or lower his rent. Now the interest, though 

 it seems to be, like rent, a fit subject of taxation, is 

 really not so, for two reasons : it is impossible to get at 

 profits of trade as you do at rent, and it is easy to re- 

 move stock in trade, while land is not removable. The 

 result has been, that where attempts have been made to 

 tax profits, the State has had recourse to some vague and 

 inaccurate estimate, and has been always content with a 

 very moderate proportion, answering to a very low valua- 

 tion. Thus our land-tax, though intended to tax all 

 profits, falls mainly on the country and on houses in the 

 towns. In Holland and in Hamburgh, where stock was 

 taxed, the inhabitants were allowed to assess themselves 

 that an inquisition might be avoided. Had Dr. Smith 

 lived to our days, he would have found some reason to be 

 confirmed in his opinion of the land paying far more than 

 its share, owing to its being irremovable and unconcealable ; 

 but he would also have seen how considerable an ap- 

 proximation to equal payment could be made by inqui- 

 sitorial proceedings, and well-constructed machinery. 

 Taxes laid on particular trades must fall on the consumer, 

 as the dealer will not remain in a business which does 

 not yield the average rate of profit. A tax on all profits 

 of one trade, but proportioned to each dealer's trade, 

 finally falls on the consumer ; if not so proportioned it 

 falls on the consumer, but favours great and oppresses 

 small dealers. The shop-tax once proposed had this 

 disadvantage in a great degree ; for all shops must have 

 paid. The personal taille in France was a tax upon 

 farmers' profits, and as a farmer paying rent never can 

 withhold his crop from the market in order to raise his 



