BUREAU OF EXCISES |
| DIRECTOR Klaus Dewey |
ABOUT
A tax, abstracts its whole amount realized, besides the cost of collecting it, from the annual profits of capital. If a mechanic realize, from a capital of one thousand dollars, a nett saving of one hundred and fifty dollars, and is obliged to pay fifty dollars of this sum in taxes, he is in the condition of one who, without being obliged to pay taxes, realized a saving of only one hundred dollars. Hence, he would be able, if he conducted his business upon a hired capital, to pay only a diminished rate of interest. And, if it be said that he may raise the price of his labor, and thus repay himself, it may be answered : 1st. By raising the price of his labor, he diminishes the demand, and his profits are thereby reduced, so that he will be no better able to pay the former interest. And, 2dly, as other men being taxed, will raise their prices, he is obliged 'to pay more for every thing that he consumes ; and thus, again, his ability is lessened. Every one must see, that the immense sum which Great Britain- annually pays, as the interest of her national debt, is so much abstracted from the profits of her capital ; and that the amount of profit to the individuals must be greater, just in proportion as that is diminished ; and that the profits of the capitalist and the producer would rise accordingly.