Other species of revenue escape still more easily from direct contribution. A considerable revenue in the state, for example, is the profit of trade and that of manufacture; but, on being directly taxed, it is almost sure to be annihilated. Another very considerable revenue is that of workmen, who gain but a mere wage; the great number of those who enjoy it, makes up for the slenderness of the portion belonging to each. Such also are the revenues of all those classes whose labours leave no products which are substantial and capable of accumulation. Most men who live by those different means, do not even know the extent of their revenue; because, receiving it day by day, and expending it in the same manner, they think they have nothing when their labour is all that remains. They form the poorest class of society, but also the most numerous; and, if we add up the annual consumption of all the day-labourers, it is greatly superior in value to that of all the rich.
But before we think of taxing this revenue, we must remember, that nothing can be more absurd, as well as cruel, than to take away a part of the necessary emolument of productive workmen; for, either it must actually be paid by them, in which case they would suffer, languish, and at last die of penury, and with them would also be destroyed the national revenue, which should spring from their labour; or else they would succeed in obtaining reimbursement for their contribution, either on the class which employs them, or on that of consumers. F or this purpose, they would raise either all their wages, or the price of all their produce. Thus they would raise manufactures, or, at least, shut foreign markets; and, by a circuit a little longer, they would equally arrest production, and destroy the national revenue. No operation, however, could be more difficult than to separate, in a poor man's revenue, the necessary from the superfluous, which alone can be taxed. Besides, such a tax would be to fix contribution on labour and industry; or, in some degree, to inflict a penalty on those qualities which it is the most essential to encourage; it would be to arrest, at their source, the wealth and prosperity of states. Such are the motives which have generally prevented a universal tax on income; or, at least, have prevented it from reaching the industrious classes completely enough to become productive.
But those different kinds of income, which cannot be appreciated for taxation, at their origin, are always employed in consumption; and this is the moment when taxation can reach them with far less inconvenience. By taxing every kind of goods, in the purchasing of which wealth may be employed, we are sure to make that wealth contribute, and we need not know to whom it belongs. For such a contribution there is not required any declaration of fortune, any inquisition, any distinction of poor and rich; it does not attach taxation to labour; it does not punish what ought, above all other things, to be encouraged.
Besides, each contributor pays his taxes on consumption, as it were in a voluntary manner, at the time when he has money, and finds himself enabled to purchase the thing taxed; he reimburses the merchant, who has already advanced the impost, and he scarcely perceives that himself has paid any.
Taxes on consumption are, however, very far from being able to reach the revenue in a correct manner, by means of the expenditure. It is required, for example, that every kind of fortune, every kind of industry, protected by the state, should pay the treasury ten per cent. of the revenue which they give. At first view it appears that this object would be obtained by taxing every consumption, every expense, of what nature soever, at ten per cent. of its value. But if we attempt to come at every kind of consumption, we must subject to the same tax the commodities produced in the interior of families by domestic industry, those produced by the national manufactures, and those introduced by foreign commerce. By ****** exceptions to this rule, not only would the principle of equality he destroyed, in a very unjust manner, but also each would be induced to serve himself, greatly to the prejudice of manufactures, trade, and the division of labour, which much increases its productive power. On the other hand, by following it rigorously out, each family would be subjected to an inspection of its domestic economy, absolutely insupportable.
The universality of such a tax would have a still more fatal inconvenience, if it were extended to commodities of prime necessity. By exempting such commodities, a very considerable portion of the national expenditure is left out; but, in taxing them, the risk is run of confounding the necessary with the superfluous, in the poor man's consumption; and, should the former be encroached on, of arresting the reproduction of revenue, either by the penury and death of the workman, or by the rising of his wages.
In the last place, no idea could be entertained of taxing goods destined for exportation; because, whenever the price of them was raised, foreign consumers would provide themselves elsewhere; it would be necessary, in that case, to restore, by drawbacks, all the customs levied on them. But how could endless frauds upon this principle be avoided? The vexatious laws intended to subject foreign commerce to a constant superintendence, to prevent such frauds, would alone be equivalent to a heavy contribution.
