The World's Greatest Books [Volumes 1-15, 17-20]

The second duty of the sovereign, that of protecting, as far as possible, every member of the society from the injustice or oppression of every other member of it, or the duty of establishing an exact administration of justice, requires an increasing expenditure corresponding to the advance and development of the society.

Public works and public institutions are a third cause of expenditure on the part of sovereign or commonwealth; and have two principal objects—that of facilitating the commerce of the society and that of promoting the instruction of the people. Roads, bridges, canals, are examples of the former; schools, universities, established Churches are examples of the latter. And among other expenses of the sovereign or commonwealth we must include the expenses of supporting the dignity of the sovereign.

The funds or sources of revenue which peculiarly belong to the sovereign or commonwealth consist either in stock or in land; but being quite insufficient to meet the public expenditure they are supplemented by taxation. Every tax is finally paid from rent, profit or wages, or from all of them indifferently; and the chief principle to be observed in taxation is, that the subjects of the State ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities—that is, in proportion to the revenue which they respectively enjoy under the protection of the State. The tax which each individual is bound to pay ought to be certain and not arbitrary; every tax ought to be levied at the time or in the manner in which it is most likely to be convenient for the contributor to pay it; and finally, every tax ought to be so contrived as to take out and to keep out of the pockets of the people as little as possible over and above what it brings into the public treasury of the State.