ABSTRACT
Taxation provides for the annual expenditure of the state; and for each taxpayer, taxes are also a sharing of common expenses made for him and his fellow citizens. In this chapter, the author establishes two connected rules for taxation—first, that income is generated by labor, and that therefore taxation must follow such labor wherever it generates income, and second, that the taxes generally benefit the rich since they have a greater need for protection of the property; therefore a larger share of the tax should be paid by the wealthy. Taxation ought to be considered by the citizens of a state as a recompense for the protection, which government grants to their persons and properties. It is just that all support this, in proportion to the advantages secured them by the society, and to the expense it incurs for them.
