ll
on the building rent and the ground rent. It is probable, that in the
first instance, both would be affected; but as houses are, though
slowly, yet certainly perishable, and as no more would be built, till
the profits of the builder were restored to the general level, building
rent, would, after an interval, be restored to its natural price. As the
builder receives rent only whilst the building endures, he could pay no
part of the tax, under the most disastrous circumstances, for any longer
period.

The payment of this tax, then, would ultimately fall on the occupier and
ground landlord, but "in what proportion, this final payment would be
divided between them," says Adam Smith, "it is not perhaps very easy to
ascertain. The division would probably be very different in different
circumstances, and a tax of this kind might, according to those
different circumstances, affect very unequally both the inhabitant of
the house, and the owner of the ground."[15]

Adam Smith considers ground rents as peculiarly fit subjects for
taxation. "Both ground rents, and the ordinary rent of land," he says,
"are a species of revenue, which the owner in many cases enjoys, without
any care or attention of his own. Though a part of this revenue should
be taken from him, in order to defray the expenses of the state, no
discouragement will thereby be given to any sort of industry. The annual
produce of the land and labour of the society, the real wealth and
revenue of the great body of the people, might be the same after such a
tax as before. Ground rents, and the ordinary rent of land, are,
therefore, perhaps the species of revenue, which can best bear to have a
peculiar tax imposed upon them." It must be admitted that the effects of
these taxes would be such as Adam Smith has described; but it would
surely be very unjust, to tax exclusively the revenue of any particular
class of a community. The burdens of the state should be borne by all in
proportion to their means: this is one of the four maxims mentioned by
Adam Smith, which should govern all taxation. Rent often belongs to
those who after many years of toil, have realised their gains, and
expended their fortunes in the purchase of land; and it certainly would
be an infringement of that principle which should ever be held sacred,
the security of property, to subject it to unequal taxation. It is to be
lamented, that the duty by stamps, with which the transfer of landed
property is l