INCIDENCE OF RATES AND TAXES 139 



of ordinary dwelling-houses. In the case of 

 shops, part may be transferred to the 

 consumer of the goods and part to the 

 ground landlord, but part, at any rate, 

 will act like an additional income tax. 1 

 Similarly, rates on railways, canals, gasworks, 

 and waterworks are, in the main, taxes on 

 the profits of the shareholders ; that is, they 

 are of the nature of an income tax. 



The idea that rates on agricultural land do 

 not affect the occupier (except when changed 

 during his lease) rests on the idea that the 

 rent of land is a true economic rent a pure 

 surplus, arising solely from differential 

 natural advantages. As soon as the 

 central fact is realised that the greater 

 part of gross rental is really profit, and 

 profit at a' very low rate, this simple method 

 of regarding the subject must be abandoned. 

 The rates and taxes on agriculture fall for 



1 Blunden, p. 60, et infra. 



