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Of Taxes David Hume
There is a prevailing maxim, among some reasoners, that everytax creates a new
ability in the subject to bear it, and thatencrease of public burdens encreases
proportionably theof the people. This maxim is of such a nature as is mostto be abused;
and is so much the more dangerous, as itscannot be altogether denied: but it must be
owned, whenwithin certain bounds, to have some foundation in reason and.
When a tax is laid upon commodities, which are consumed bycommon people, the
necessary consequence may seem to be,that the poor must retrench something from their
way of, or raise their wages, so as to make the burden of the taxentirely upon the rich. But
there is a third consequence,often follows upon taxes, namely, that the poor
encreaseindustry, perform more work, and live as well as before,demanding more for their
labour. Where taxes are, are laid on gradually, and affect not the necessarieslife, this
consequence naturally follows; and it is certain,such difficulties often serve to excite the
industry of a, and render them more opulent and laborious, than others,enjoy the greatest
advantages. For we may observe, as ainstance, that the most commercial nations have
notpossessed the greatest extent of fertile land; but, on the, that they have laboured under
many natural. TYRE, ATHENS, CARTHAGE, RHODES, GENOA, VENICE,, are
strong examples to this purpose. And in all history,find only three instances of large and
fertile countries,have possessed much trade; the NETHERLANDS. ENGLAND, and. The
two former seem to have been allured by theof their maritime situation, and the necessity
theyunder of frequenting foreign ports, in order to procure whatown climate refused them.
And as to FRANCE, trade has comeinto that kingdom, and seems to have been the effect
ofand observation in an ingenious and enterprizing, who remarked the riches acquired by
such of thenations as cultivated navigation and commerce.
The places mentioned by CICERO, as possessed of the greatestin his time, are
ALEXANDRIA, COLCHUS, TYRE, SIDON,, CYPRUS, PAMPHYLIA, LYCIA,
RHODES, CHIOS, BYZANTIUM,, SMYRNA, MILETUM, COOS. All these, except
ALEXANDRIA, weresmall islands, or narrow territories. And that city owedtrade entirely
to the happiness of its situation.
Since therefore some natural necessities or disadvantages maythought favourable
to industry, why may not artificial burdensthe same effect? Sir WILLIAM TEMPLE, we
may observe,the industry of the DUTCH entirely to necessity,from their natural
disadvantages; and illustrates hisby a striking comparison with IRELAND; "where," says
he,"by the largeness and plenty of the soil, and scarcity of people,things necessary to life
are so cheap, that an industrious, by two days labour, may gain enough to feed him the
rest ofweek. Which I take to be a very plain ground of the lazinessto the people. For men
naturally prefer ease before, and will not take pains if they can live idle; though, by
necessity, they have been inured to it, they cannotit, being grown a custom necessary to
their health, and tovery entertainment. Nor perhaps is the change harder, fromease to
labour, than from constant labour to ease."which the author proceeds to confirm his
doctrine, by, as above, the places where trade has most, in ancient and modern times; and
which are commonlyto be such narrow confined territories, as beget afor industry.