| order, should be subjected to imposts. 
introduced to Britain within the last 30 years 
from Siberia. 
TAXES denote that portion of their property 
which the government of a state exacts, for the 
supply of the public necessities, from its subjects, 
or other persons residing in the country and 
partaking of its advantages. Hence they form a 
part of the state-revenues. Another part is 
formed by the revenues from the domains, and 
from the royal prerogatives, so far as the last af- 
ford only official gains, and are not used at the 
same time as means to exact or to raise taxes. 
In most states, particularly in those of ancient 
times, the public expenditures were supplied from 
the revenues of domains and royalties, which 
were considered, the former as the property, the 
latter as privileges, of the sovereigns. As the 
expenses of the state continually increased, or 
the rulers, from bad economy, found the above- 
_ mentioned sources of revenue insufficient, they 
began to demand contributions from the mem- 
bers of the community, and imposed upon them 
taxes or imposts. They usually, however, met 
with great difficulties, since the nobles would not 
suffer themselves to be taxed, under pretext of 
forming a state within themselves, and main- 
tained that such contributions could be raised 
only with their consent. What could be obtained 
from them voluntarily, was very little. They, 
however, acknowledged the necessity of increas- 
ing the revenue of the state; but the sovereigns 
were afraid to constrain them to contribute, and 
inclined to grant them exemption from taxes, if 
they would only consent that the rest of the na- 
tion, which did not belong to their privileged 
The 
nobles, fearing that if no other source of revenue 
were left open to the sovereign, the burden of 
taxes would finally fall on themselves, willingly 
allowed him the right of taxing the rest of the 
nation, which, from want of union and power, 
was obliged to yield. Thus the taxes, for a long 
time, were laid almost everywhere on the com- 
mons only, the higher and more powerful orders, 
the clergy and nobility, being exempt. En- 
lightened governments, however, early perceived 
that, in order to render taxes a permanent source 
of revenue, means must be left to the subjects, 
of gaining, every year, so much as to be able to 
subsist, and to have a sufficient sum remaining 
to pay the taxes. Hence they were induced to 
refrain from exhausting their property. But a 
long time elapsed before the principles of equi- 
table taxation were well understood. It was not 
till a late period, since government has become 
an object of profound reflection and a more per- 
fect system of political economy has arisen, that 
a theory of taxation has been formed, which can 
be used as a solid basis of revenue. According 
to this theory, taxes are the portions of the pro- 
perty of individuals, which each has to contribute 
to the public treasury, to defray the public ex- 
| penses. From this definition it follows,— 
TAXES. 
403 
1, That no one should be exempted from taxes, 
who possesses property or income, and is protected 
in his person and estate, and that, in conse- 
quence, absolute freedom from taxes in any indi- 
vidual, so situated, is unjust towards those 
members of the community who are charged 
with them. 
2. That the taxes ought to be assessed ac- 
cording to the net income of each individual.: 
3. That the taxes must never be suffered to 
injure the sources of income. 
4, That the ratio of taxes to income ought to 
be as small as possible, in order that the revenue 
of the nation, as well as of the individual, may 
be allowed to increase. 
The greatest difficulty in effecting a just dis- 
tribution of taxes, is to find the clear income of 
every individual. In the mode of taxation for- 
merly practised, this difficulty was but little 
considered. Financiers were satisfied with laying 
taxes where they observed property or income, 
without caring much whether they were taken 
from the gross or net income, from the capital, 
or from the interest and profits. The rudest 
mode was to assess the taxes according to the 
number of heads. On the supposition that every 
one receives enough to pay something, they de- 
manded from every head such a sum as, it was 
presumed, even the poorest could afford : the rich 
and the poor paid the same amount; and, there- 
fore, the greatest inequality prevailed. Real 
property was early taken as a standard in dis- 
tributing the taxes, as cultivated land, in civilized 
countries, appeared to be the safest and most 
substantial property. As this afforded to its pro- 
prietors or cultivators a certain income, the an- 
nual produce of the lands of those who were 
declared subject to taxation was estimated, and, 
after this ratio, the tax was distributed on real 
property. Thus arose the land tax, in which, 
however, the gross and net produce of the lands 
were seldom accurately distinguished ; and where 
it was done, little dependence was to be put upon 
the estimate itself, and still less on the mainte- 
nance of this principle through the changes of | 
income. 
As the land tax was insufficient to furnish the 
necessary revenue, other means were sought for, 
and the closest attention was paid, particularly 
as the circulation of money increased in civil 
society, to all those quarters where money ap- 
peared. Wherever money changed hands, as in 
sales, exchanges, inheritances, taxes were laid. 
Whoever desired to obtain any favour from the 
public officers, was obliged to purchase it with 
money. When property was acquired, something 
must be relinquished. Hence the long series of 
taxes on acquisition and industry. As the in- 
come of the members of the community did not 
yield so much as the state required, the attention 
of governments was directed to expenditures ; 
and people were made to pay, wherever their 
expenses could be estimated. Thus taxes on 
