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Principles Of Political Economy

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Principles of Political Economy by John Stuart Mill was one of the most important economics or political economy textbooks of the mid-nineteenth century.
Beside discussing descriptive issues such as which nations tended to benefit more in a system of trade based on comparative advantage (Mill's answer: those with more elastic demands for other countries' goods), the work also discussed normative issues such as ideal systems of political economy, critiquing proposed systems such as communism and socialism.
Along with A System of Logic, Principles of Political Economy established Mill's reputation as a leading public intellectual. Mill's sympathetic attitude in this work and in other essays toward contemporary socialism, particularly Fourierism, earned him esteem from the working class as one of their intellectual champions.
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German Budget, 1881-1882.

(In millions and tenths of millions.)

Receipts:   (1.) Property income from domains and forests $11.7 From mines and salt-works 2.5 From railways 22.5 Miscellaneous 5.0   $41.7 (2.) Royal Lottery 1.0 (3.) Bureau of Justice $12.7 Harbors and bridges .5   13.2 (4.) Direct taxes $35.5 (5.) Indirect taxes (for Prussia) 12.3 Total receipts $103.6
Expenditures:   (1.) Civil list 3.0 (2.) Debt 25.0 (3.) Various ministries, schools, etc. 49.5 (4.) Pensions 4.0 (5.) Miscellaneous 19.5 Total expenditures[352] $101.0

The Prussian direct taxes include (1) a land-tax, (2) a house-tax, (3) an income-tax, (4) a class-tax, (5) a trade-tax, and (6) miscellaneous taxes.

IV. How the French supply themselves may be seen by the following statement:[353]

French Budget, 1881.

(In millions and tenths of millions.)

Receipts:   Direct taxes $75.9 Similar taxes 4.7 Registry, stamps, etc 135.1 Forests 7.6 Customs (and salt duty $3.5) 65.4 Indirect taxes (including tobacco) 209.7 Post-Office and telegraph 27.2 Miscellaneous 29.8 Total receipts $555.4
Expenditures:   Public debt, etc. $249.0 General functions of the ministries 243.7 Administrative expenses, cost of revenue collections, etc. 58.5 Miscellaneous 3.5 Total expenditures $554.7

The direct taxes are (1) on property; (2) one nearly like our poll-tax together with a species of income-tax; (3) a tax on doors and windows; and (4) one on licenses.

§ 5. A Résumé of the general principles of taxation.

After the manner of our classification and résumé of the subject of value and money, it may be convenient to here insert a recapitulation of the various principles under the treatment of taxation.[354]

Comparison Between Direct And Indirect Taxation.

Adam Smith's “Canons of Taxation.”—A tax should be: I. Equal (in amount of sacrifice entailed). II. Certain. III. Timely. IV. All for the state.

A Tax is either:

Direct.

Indirect (on commodities.)

Direct taxes are:

On Income.

On Expenditure.

Taxes on Income are:

General.

Special.

General income taxes. The best of taxes, if people were all honest. As it is, it falls most heavily on the conscientious. Should be reserved for emergency. All savings and a fixed amount in all incomes should be exempt.

Special taxes are on:

Rent.

Wages.

Profits.

Taxes on Rent. Agricultural rent is meant. It falls entirely on the landlord, and, if not balanced by taxes on other classes, is unjust. May be blended with a tax on profits, if on rent due to landlord's improvements.

Taxes on Wages are:

On Skilled.

On Unskilled.

Skilled wages are at a monopoly price, and taxes on them are paid by the laborers, so long as wages are not reduced below their just proportion.

Unskilled wages. (1) Population diminished by it. Paid by profits. (2) Population left stationary. Shared between profits and wages. (3) Population increasing in spite of it. Falls entirely on wages.

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352

“Handbuch der Verfassung und Verwaltung in Preussen und dem Deutschen Reich,” by Graf Hue de Grais (second edition, 1882), p. 138.

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353

“Le Budget. Revenus et Dépenses de la France,” by M. Block (1881), pp. 57, 82.

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354

Taken, with modifications, from Milnes's “Problems in Political Economy,” p. 377.

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