WEALTH OF NATIONS. 189 



prices, he can only throw the taille on the landlord by 

 lowering his rent. The tax being levied according to the 

 farmer's stock, made every one stock his farm as badly 

 as possible, and endeavour to conceal the stock he had. 

 Poll-taxes in countries having slaves, are taxes on profits. 

 Poll-taxes on free men are of a wholly different nature, 

 and are the most unequal of all. Taxes on household 

 servants are taxes on consumption, and they are objec- 

 tionable because servants are not employed in proportion 

 to the income of their masters ; then these taxes fall 

 heavier on the middle classes, and not at all on the lower 

 orders, unless so far as they may prevent some from find- 

 ing employment. 



An Appendix on this head discusses Taxes on Capital, 

 which have not generally been intended to be levied by 

 any State ; all the imposts of this kind being meant to 

 affect income only. But when property changes hands 

 by death, then both the Romans in Augustus' time, the 

 Dutch, the English, and all feudal countries, in taxing the 

 casualties, intentionally levied imposts upon capital. The 

 feudal perquisites on alienation operated when property 

 was sold. Stamp duties on purchases have with us the same 

 operation. Taxes on succession fall on the owner ; 

 taxes on sale fall on the seller, because he is the needy 

 person and must pay. The Spanish Alcavala seems to 

 be of this class, though Dr. Smith does not here consider 

 it. All taxes on capital are unthrifty, because they 

 diminish the fund for employing labour and machinery, 

 or increasing production. Living upon the principal, is 

 accordingly a common expression to denote the usual 

 spendthrift course. 



It must be observed that Dr. Smith in this, as in other 



