But those different kinds of income, which cannot be appreciated for taxation, at their origin, are always em ployed in consumption; and this is the moment when tax ation earr reach them with far less inconvenience. By tax ing every kind of goods, in the purchasing of which wealth may be employed, we are sure to make that wealth contri bute, 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 doe- 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 ad vanced the impost, and he scarcely perceives that himself has paid any.
'Faxes on consumption arc, 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 ex pense, of what nature socver, at ten per cent. of its value. But if we attempt to come at every kind of consumption, -re must subject to the same tax the commodities produced in the interior of families by domestic industry, those pro duced by the national manufactures, and those introduced by foreign commerce. By making exceptions to this rule, not only would the principle of equality be 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 inspec tion of its domestic economy, absolutely insupportable.
The universality of such a tax would have a sull_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 ne cessary with the superfluous, in the poor man's consump tion; 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 pro vide 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.
It is a great inconvenience of taxes on consumption, that it never can he known at their establishment who is to pay them in the long run. The legislature always proposes to make them be reimbursed by the consumer; but some times they do not reach his distance ; at other times, they do not stop at him, and the consumer is anew reimbursed for them by those for whom he labours. To make the con sumer pay the whole tax, the nation must be in a state of increasing prosperity; for otherwise, as the consumer is not richer than before the tax, he cannot devote more money than formerly to his enjoyments, and must, there fore, in some shape, diminish his consumption. The pro ducer, on his side, no longer selling the whole of his goods, must diminish his production, or consent to pay a portion of the tax. If a public calamity happens, a scarcity or et en a state of embarrassment in trade, consumption still further diminishes; and the producer, compelled to dispose of his goods, pays the whole tax; till, no longer finding any profit in his labour, he abandons it entirely.
On the other hand, when taxes and consumption have raised the price of every thing, industrious moo, who form a numerous class among consumers, no longer find in their industry sufficient resources to support them. His wages no longer furnish the day-labourer with those limit ed enjoyments which are to be reckoned among the neces saries of life, since life, or the power of labouring, could not long be maintained in an individual deprived of every pleasure. He struggles, therefore, with all his strength, to get his wages increased; the manufacturer and merchant, in like manner, to get their profits increased. As the total sale diminishes, it is necessary for their subsistence that they obtain more for each separate article. Their joint efforts soon succeed in raising the price of all goods coming from their hands, but especially goods of prime necessity, because the sellers of these give the law to buyers, who cannot do without such goods. A rise in the price of those commodities reacts anew on wages and pro fits; the disorganisation becomes complete; national pro ductions cost much higher than those of countries not oppressed by a similar system ; they cannot support a com petition in foreign markets; exportation ceases, demand is not renewed, and the nation sinks under a frightful dis tress.