amentable effect, it deprives the contributor of a portion of his
riches, without enriching the state. This is what we may comprehend, if
we consider that every man's power of consuming, whether productively or
not, is limited by his income. He cannot then be deprived of a part of
his income, without being obliged proportionally to reduce his
consumption. Hence arises a diminution of demand for those goods, which
he no longer consumes, and particularly for those on which the tax is
imposed. From this diminution of demand, there results a diminution of
production, and consequently of taxable commodities. The contributor
then will lose a portion of his enjoyments; the producer, a portion of
his profits; and the treasury, a portion of its receipts."

M. Say instances the tax on salt in France, previous to the revolution;
which, he says, diminished the production of salt by one half. If,
however, less salt was consumed, less capital was employed in producing
it; and therefore, though the producer would obtain less profits on the
production of salt, he would obtain more on the production of other
things. If a tax, however burdensome it may be, falls on revenue, and
not on capital, it does not diminish demand, it only alters the nature
of it. It enables Government to consume as much of the produce of the
land and labour of the country, as was before consumed by the
individuals who contribute to the tax. If my income is 1000_l._ per
annum, and I am called upon for 100_l._ per annum for a tax, I shall
only be able to demand nine tenths of the quantity of goods, which I
before consumed, but I enable Government to demand the other tenth. If
the commodity taxed be corn, it is not necessary that my demand for corn
should diminish, as I may prefer to pay 100_l._ per annum more for my
corn, and to the same amount abate in my demand for wine, furniture, or
any other luxury.[17] Less capital will consequently be employed in the
wine or upholstery trade, but more will be employed in manufacturing
those commodities, on which the taxes levied by Government will be
expended.

M. Say says that M. Turgot, by reducing the market dues on fish (_les
droits d'entree et de halle sur la maree_) in Paris one half, did not
diminish the amount of their produce, and that consequently, the
consumption of fish must have doubled. He infers from this, that the
profits of the fisherman and those engaged in the trade, must also have
doubled, and that the i