On the advantages and disadvantages of indirect taxation, and a scheme for direct taxation which would be equitable, and combine the advantages of an indirect tax

Abstract

There are two methods of lightening the pressure of those taxes which must be raised for the expenses of government; one, by lessening the expenditure; and the other, by so arranging taxation, that it shall press as lightly as possible on the tax payer. The first belongs to the department of politics; and this society, very properly, excludes all political discussion. The second belongs to that department of economic science which falls within our rules, and I propose to bring under consideration the relative advantages and disadvantages of indirect, as compared with direct, taxation; and to suggest a scheme of direct taxation, which would be equitable, would avoid the disadvantages, and combine the advantages of indirect taxation, without disturbing the present distribution of the burden.