Such taxes upon luxuries as the greater part of the duties of customs and excise, though they all fall indifferently upon every different species of revenue, and are paid finally, or without any retribution, by whoever consumes the commodities upon which they are imposed, yet they do not always fall equally or proportionably upon the revenue of every individual.As every man's humour regulates the degree of his consumption, every man contributes rather according to his humour than in proportion to his revenue; the profuse contribute more, the parsimonious less, than their proper proportion.During the minority of a man of great fortune he contributes commonly very little, by his consumption, towards the support of that state from whose protection he derives a great revenue.Those who live in another country contribute nothing, by their consumption, towards the support of the government of that country in which is situated the source of their revenue.If in this latter country there should be no land-tax, nor any considerable duty upon the transference either of movable or of immovable property, as is the case in Ireland, such absentees may derive a great revenue from the protection of a government to the support of which they do not contribute a single shilling.This inequality is likely to be greatest in a country of which the government is in some respects subordinate and dependent upon that of some other.The people who possess the most extensive property in the dependent will in this case generally choose to live in the governing country.Ireland is precisely in this situation, and we cannot, therefore, wonder that the proposal of a tax upon absentees should be so very popular in that country.It might, perhaps, be a little difficult to ascertain either what sort or what degree of absence would subject a man to be taxed as an absentee, or at what precise time the tax should either begin or end.If you except, however, this very peculiar situation, any inequality in the contribution of individuals which can arise from such taxes is much more than compensated by the very circumstance which occasions that inequality- the circumstance that every man's contribution is altogether voluntary, it being altogether in his power either to consume or not to consume the commodity taxed.
Where such taxes, therefore, are properly assessed, and upon proper commodities, they are paid with less grumbling than any other.When they are advanced by the merchant or manufacturer, the consumer, who finally pays them, soon comes to confound them with the price of the commodities, and almost forgets that he pays any tax.
Such taxes are or may be perfectly certain, or may be assessed so as to leave no doubt concerning either what ought to be paid, or when it ought to be paid; concerning either the quantity or the time of payment.Whatever uncertainty there may sometimes be, either in the duties of customs in Great Britain, or in other duties of the same kind in other countries, it cannot arise from the nature of those duties, but from the inaccurate or unskilful manner in which the law that imposes them is expressed.
Taxes upon luxuries generally are, and always may be, paid piecemeal, or in proportion as the contributors have occasion to purchase the goods upon which they are imposed.In the time and mode of payment they are, or may be, of all taxes the most convenient.Upon the whole, such taxes, are, perhaps, as agreeable to the three first of the four general maxims concerning taxation as any other.They offend in every respect against the fourth.
Such taxes, in proportion to what they bring into the public treasury of the state, always take out or keep out of the pockets of the people more than almost any other taxes.They seem to do this in all the four different ways in which it is possible to do it.
First, the levying of such taxes, even when imposed in the most judicious manner, requires a great number of custom-house and excise officers, whose salaries and perquisites are a real tax upon the people, which brings nothing into the treasury of the state.This expense, however, it must be acknowledged, is more moderate in Great Britain than in most other countries.In the year which ended on the 5th of July 1775, the gross produce of the different duties, under the management of the commissioners of excise in England, amounted to L5,507,308 18s.81/4d., which was levied at an expense of little more than five and a half per cent.From this gross produce, however, there must be deducted what was paid away in bounties and drawbacks upon the exportation of excisable goods, which will reduce the net produce below five millions.* The levying of the salt duty, an excise duty, but under a different management, is much more expensive.
