INCIDENCE OF RATES AND TAXES 133 



their fixed skill. And so long as any 

 surplus at all remains in the form of 

 gross rent, the land will be cultivated, 

 although it does not give ordinary interest 

 on all the capital sunk in it. 



Let us now consider the influence of 

 declining profit on the distribution of the 

 burden of taxes as between the landlord 

 and tenant. And let us suppose that there 

 is some increase of rates during the currency 

 of a lease. At the end of it, the tenant 

 will, no doubt, try to obtain a corre- 

 sponding reduction of rent. With declining 

 profit and competition for tenants, rather 

 than by tenants, the power in bargaining 

 is on the side of the tenant, and 

 he is likely to obtain the reduction. In 

 precisely the same way, if the tenant has 

 suffered by bad seasons or by low prices, 

 he will probably obtain not only an ultimate 

 reduction but some partial remissions. 



