ABSTRACT
In any discussion of the equity of the economic system, notice must necessarily be taken of the effects of the fiscal policy of the State. Apart from intervention to regulate the conditions of labour, there are two main ways in which the State can attempt to reduce the inequalities of wealth. The first method is to develop the Social Services, and to do so in such ways as to provide for every citizen at least a minimum of the necessaries of a full life. The second method of State action relates to the use that can be made of the State’s power to levy the taxation required for its social expenditure in such a way as at the same time to lessen the inequalities of wealth. Some people would impose heavy taxation on the rich for its own sake, and having raised the revenue would cast about for some way of distributing it to the poor.
