INCIDENCE OF RATES AND TAXES 119 



burden. Practically, however, in England 

 at present the consumer is not affected. 

 The question, then, of most interest and 

 difficulty for the present purpose, is the 

 incidence as between the farmer and the 

 landlord. To begin with, in theory and 

 under the simple conditions assumed, it 

 makes no difference whether the occupier or 

 the owner is made to pay in the first 

 instance : we are concerned with the ulti- 

 mate or real incidence. If the farmer pays 

 the rate, but by way of compensation pays 

 so much less rent than he would do if he 

 were not responsible for the rate, the rate, 

 of course, comes out of the rent. And this, 

 I may say, is the usually accepted theory of 

 the incidence of rates. It is important to see 

 the principles on which the theory rests. 



In the first place, it is assumed that under 

 the influence of competition, the farmer will 

 only offer so much rent as will leave him on 



