"Neque quies gentium, sine armis; neque arma, sine stipendiis; neque TACITI HIST., iv. 74. EDINBURGH: ADAM AND CHARLES BLACK. MDCCCLXIII. PREFACE ΤΟ THIS EDITION. THE second edition of this work was published ten years ago. During the intervening period, the theory of taxation has been further inquired into; the income-tax has been the theme of numerous and lengthened discussions and investigations; and great changes have been effected in our commercial policy, and in that of surrounding countries. In endeavouring to profit by the additional information which has been thus afforded, we have subjected every part of our work to a careful revision: and being to a great extent rewritten it has, in its present form, more of the character of a new treatise than of a revised edition of an old one. The doctrines embodied in it continue, indeed, to be nearly the same as formerly; but we would fain hope that they have been set in a clearer light; that the groundlessness of the objections made against them has been rendered more obvious; and that the principles and practical operation of the more important taxes and schemes of taxation have been better elucidated. a 3 Of late years our taxation has been much changed, though it may be doubted whether it has been to any great extent improved. The income-tax was introduced by Sir Robert Peel, partly to raise the revenue to an equality with the expenditure, and partly to enable him to modify and abolish various customs and excise duties. He undertook this difficult task with that considerate boldness by which his policy was generally distinguished; and, on the whole, the changes he effected have been highly advantageous. But it is difficult, when engaged in such a course, to keep within safe limits. In a few instances Sir Robert Peel appears, notwithstanding his characteristic caution, to have reduced and repealed taxes against which no good objection could be urged; and hence the necessity under which he found himself of resorting to the expedient, so apt to be followed, of renewing the income-tax. his administration, the policy which he inaugurated, and which, when properly restricted, deserves every commendation, has been carried to what appears to be a dangerous extreme. With the exception, indeed, of the house-tax, which has been revived in a very contracted shape, and of the quasi extension of the succession duties to real property, little has been done except to narrow the basis of taxation left by Sir Robert Peel. In the course of this volume we have stated the grounds on which we venture to think Since that it would have been a better as well as a safer policy had we retained or widened that basis. We regret that the doctrines advanced in this book should be in many respects at variance with the financial policy which this country has followed for some years past. To censure measures that have been approved by Parliament, and to some extent also by the public, may, we fear, appear rather presumptuous. But their judgments, though entitled to the utmost respect, are sometimes founded on incomplete or erroneous information, and are liable to be greatly biassed by evanescent and accidental circumstances. It is known to everybody, that even in recent times, such has often been the case with parliamentary proceedings; and there appear to be sufficient grounds for thinking that such has been the case in this instance. But, however this may be, the matters involved in this inquiry are of national importance and deserve farther and careful consideration. We can truly say that we have endeavoured to treat them on their own merits. The conclusions to which we have come have not been dictated or influenced by anything extrinsic. They have been derived from what appear to be well-established principles; and are, in fact, the only conclusions to which, treating the subject as it should be treated, solely on public grounds and in a scientific and general point of view, it seems possible to come. |