CHAPTER V. OUR PRODUCTIONS ARE OVERLOADED WITH INTERNAL TAXES——

 This is but a new wording of the Sophism¹ before noticed. The demand made is, that the foreign article should be taxed, in order to neutralize² the effects of the internal tax, which weighs down domestic produce. It is still then but the question of equalizing the facilities of production. We have but to say that the tax is an artificial obstacle, which has exactly the same effect as a natural obstacle, i.e. the increasing of the price. If this increase is so great that there is more loss in producing the article in question at home than in attracting it from foreign parts by the production of an equivalent value of something else—laissez faire. Individual interest will soon learn to choose the lesser³ of two evils. I might refer the reader to the preceding demonstration⁴ for an answer to this Sophism; but it is one which recurs⁵ so often, that it deserves a special discussion.

 

I have said more than once, that I am opposing only the theory of the protectionists, with the hope of discovering the source of their errors. Were I disposed to enter into controversy⁶ with them, I would say: Why direct your tariffs⁷ principally against England, a country [49] more overloaded⁸ with taxes than any in the world? Have I not a right to look upon your argument as a mere⁹ pretext¹⁰? But I am not of the number of those who believe that prohibitionists are guided by interest, and not by conviction. The doctrine¹¹ of Protection is too popular not to be sincere. If the majority could believe in freedom, we would be free. Without doubt it is individual interest which weighs us down with tariffs; but it acts upon conviction. "The will (said Pascal) is one of the principal organs of belief." But belief does not the less exist because it is rooted in the will and in the secret inspirations of egotism.

 

We will return to the Sophism drawn¹² from internal taxes.

 

The government may make either a good or a bad use of taxes; it makes a good use of them when it renders to the public services equivalent to the value received from them; it makes a bad use of them when it expends¹³ this value, giving nothing in return. To say in the first case that they place the country which pays them in more disadvantageous conditions for production, than the country which is free from them, is a Sophism. We pay, it is true, so many millions for the administration of justice, and the maintenance of order, but we have justice and order; we have the security which they give, the time which they save for us; and it is most probable that production is neither more easy nor more active among nations, where (if there be such) each individual takes the administration of justice into his own hands. We pay, I grant, many millions for roads, bridges, ports, steamships¹⁴; but we have these steamships, these ports, bridges, and roads; and [50] unless we maintain that it is a losing business to establish them, we cannot say that they place us in a position inferior to that of nations who have, it is true, no budget of public works, but who likewise have no public works. And here we see why (even while we accuse taxes of being a cause of industrial inferiority) we direct our tariffs precisely¹⁵ against those nations which are the most taxed. It is because these taxes, well used, far from injuring, have ameliorated the conditions of production to these nations. Thus we again arrive at the conclusion that the protectionist Sophisms not only wander from, but are the contrary—the very antithesis—of truth.

 

As to unproductive taxes, suppress them if you can; but surely it is a most singular idea to suppose, that their evil effect is to be neutralized¹⁶ by the addition of individual taxes to public taxes. Many thanks for the compensation! The State, you say, has taxed us too much; surely this is no reason that we should tax each other!

 

A protective duty is a tax directed against foreign produce, but which returns, let us keep in mind, upon the national consumer. Is it not then a singular argument to say to him, "Because the taxes are heavy, we will raise prices higher for you; and because the State takes a part of your revenue, we will give another portion of it to benefit a monopoly?"

 

But let us examine more closely this Sophism so accredited¹⁷ among our legislators; although, strange to say, it is precisely those who keep up the unproductive taxes (according to our present hypothesis) who attribute to them afterwards our supposed inferiority, and [51] seek to re-establish the equilibrium¹⁸ by further taxes and new clogs¹⁹.

 

It appears to me to be evident that protection, without any change in its nature and effects, might have taken the form of a direct tax, raised by the State, and distributed as a premium²⁰ to privileged industry.

 

Let us admit that foreign iron could be sold in our market at $16, but not lower; and American iron at not lower than $24.

 

In this hypothesis there are two ways in which the State can secure the national market to the home producer.

 

The first, is to put upon foreign iron a duty of $10. This, it is evident, would exclude it, because it could no longer be sold at less than $26; $16 for the indemnifying price, $10 for the tax; and at this price it must be driven from the market by American iron, which we have supposed to cost $24. In this case the buyer, the consumer, will have paid all the expenses of the protection given.

 

The second means would be to lay upon the public an Internal Revenue tax of $10, and to give it as a premium to the iron manufacturer. The effect would in either case be equally a protective measure. Foreign iron would, according to both systems, be alike excluded; for our iron manufacturer could sell at $14, what, with the $10 premium, would thus bring him in $24. While the price of sale being $14, foreign iron could not obtain a market at $16.

 

In these two systems the principle is the same; the effect is the same. There is but this single difference; in the first case the expense of protection is paid by a [52] part, in the second by the whole of the community. I frankly²¹ confess my preference for the second system, which I regard as more just, more economical, and more legal. More just, because, if society wishes to give bounties²² to some of its members, the whole community ought to contribute; more economical, because it would banish²³ many difficulties, and save the expenses of collection; more legal, because the public would see clearly into the operation, and know what was required of it.

 

But if the protective system had taken this form, would it not have been laughable enough to hear it said: "We pay heavy taxes for the army, the navy, the judiciary, the public works, the debt, &c. These amount to more than 200 millions. It would therefore be desirable that the State should take another 200 millions to relieve the poor iron manufacturers."

 

This, it must certainly be perceived, by an attentive²⁴ investigation²⁵, is the result of the Sophism in question. In vain, gentlemen, are all your efforts; you cannot give money to one without taking it from another. If you are absolutely determined²⁶ to exhaust the funds of the taxable community, well; but, at least, do not mock them; do not tell them, "We take from you again, in order to compensate²⁷ you for what we have already taken."

 

It would be a too tedious undertaking²⁸ to endeavor to point out all the fallacies of this Sophism. I will therefore limit myself to the consideration of it in three points.

 

You argue that the United States are overburdened with taxes, and deduce thence the conclusion that it is [53] necessary to protect such and such an article of produce. But protection does not relieve us from the payment of these taxes. If, then, individuals devoting themselves to any one object of industry, should advance this demand: "We, from our participation²⁹ in the payment of taxes, have our expenses of production increased, and therefore ask for a protective duty which shall raise our price of sale:" what is this but a demand on their part to be allowed to free themselves from the burden of the tax, by laying it on the rest of the community? Their object is to balance, by the increased price of their produce, the amount which they pay in taxes. Now, as the whole amount of these taxes must enter into the Treasury³⁰, and the increase of price must be paid by society, it follows that (where this protective duty is imposed) society has to bear, not only the general tax, but also that for the protection of the article in question. But, it is answered, let everything be protected. Firstly, this is impossible; and, again, were it possible, how could such a system give relief? I will pay for you, you will pay for me; but not the less still there remains³¹ the tax to be paid.

 

Thus you are the dupes of an illusion. You determine to raise taxes for the support of an army, a navy, judges, roads, &c. Afterwards you seek to disburden from its portion of the tax, first one article of industry, then another, then a third; always adding to the burden of the mass of society. You thus only create interminable complications. If you can prove that the increase of price resulting from protection, falls upon the foreign producer, I grant something specious³² in your argument. But if it be true that the American people [54] paid the tax before the passing of the protective duty, and afterwards that it has paid not only the tax but the protective duty also, truly I do not perceive wherein it has profited.

 

But I go much further, and maintain that the more oppressive our taxes are, the more anxiously ought we to open our ports and frontiers to foreign nations, less burdened than ourselves. And why? In order that we may share with them, as much as possible, the burden which we bear. Is it not an incontestable maxim³³ in political economy, that taxes must, in the end, fall upon the consumer? The greater then our commerce, the greater the portion which will be reimbursed³⁴ to us, of taxes incorporated in the produce which we will have sold to foreign consumers; whilst we on our part will have made to them only a lesser reimbursement³⁵, because (according to our hypothesis) their produce is less taxed than ours.

1 sophism   

n.诡辩

参考例句：

• Have done with your foolish sophism.结束你那愚蠢的诡辩。
• I wasn't taken in by his sophism.我没有被他的诡辩骗倒。

2 neutralize   

v.使失效、抵消，使中和

参考例句：

• Nothing could neutralize its good effects.没有什么能抵消它所产生的好影响。
• Acids neutralize alkalis and vice versa.酸能使碱中和碱，亦能使酸中和。

3 lesser   

adj.次要的，较小的；adv.较小地，较少地

参考例句：

• Kept some of the lesser players out.不让那些次要的球员参加联赛。
• She has also been affected,but to a lesser degree.她也受到波及，但程度较轻。

4 demonstration   

n.表明，示范，论证，示威

参考例句：

• His new book is a demonstration of his patriotism.他写的新书是他的爱国精神的证明。
• He gave a demonstration of the new technique then and there.他当场表演了这种新的操作方法。

5 recurs   

再发生，复发( recur的第三人称单数 )

参考例句：

• This theme recurs several times throughout the book. 这一主题在整部书里出现了好几次。
• Leap year recurs every four years. 每四年闰年一次。

6 controversy   

n.争论，辩论，争吵

参考例句：

• That is a fact beyond controversy.那是一个无可争论的事实。
• We ran the risk of becoming the butt of every controversy.我们要冒使自己在所有的纷争中都成为众矢之的的风险。

7 tariffs   

关税制度； 关税( tariff的名词复数 )； 关税表； （旅馆或饭店等的）收费表； 量刑标准

参考例句：

• British industry was sheltered from foreign competition by protective tariffs. 保护性关税使英国工业免受国际竞争影响。
• The new tariffs have put a stranglehold on trade. 新的关税制对开展贸易极为不利。

8 overloaded   

a.超载的，超负荷的

参考例句：

• He's overloaded with responsibilities. 他担负的责任过多。
• She has overloaded her schedule with work, study, and family responsibilities. 她的日程表上排满了工作、学习、家务等，使自己负担过重。

9 mere   

adj.纯粹的；仅仅，只不过

参考例句：

• That is a mere repetition of what you said before.那不过是重复了你以前讲的话。
• It's a mere waste of time waiting any longer.再等下去纯粹是浪费时间。

10 pretext   

n.借口，托词

参考例句：

• He used his headache as a pretext for not going to school.他借口头疼而不去上学。
• He didn't attend that meeting under the pretext of sickness.他以生病为借口，没参加那个会议。

11 doctrine   

n.教义；主义；学说

参考例句：

• He was impelled to proclaim his doctrine.他不得不宣扬他的教义。
• The council met to consider changes to doctrine.宗教议会开会考虑更改教义。

12 drawn   

v.拖，拉，拔出；adj.憔悴的，紧张的

参考例句：

• All the characters in the story are drawn from life.故事中的所有人物都取材于生活。
• Her gaze was drawn irresistibly to the scene outside.她的目光禁不住被外面的风景所吸引。

13 expends   

v.花费( expend的第三人称单数 )；使用（钱等）做某事；用光；耗尽

参考例句：

• The commercial value height also expends demand how many! 商业价值高低也就是消费需求多少！ 来自互联网
• The stimulation expends basis, also lies in enhances the resident income. 刺激消费的根本，还在于提高居民收入。 来自互联网

14 steamships   

n.汽船，大轮船( steamship的名词复数 )

参考例句：

• Berths on steamships can be booked a long while in advance. 轮船上的床位可以提前多日预订。 来自《现代汉英综合大词典》
• The sailing ships were superseded by the steamships. 帆船已被汽船所取代。 来自《现代英汉综合大词典》

15 precisely   

adv.恰好，正好，精确地，细致地

参考例句：

• It's precisely that sort of slick sales-talk that I mistrust.我不相信的正是那种油腔滑调的推销宣传。
• The man adjusted very precisely.那个人调得很准。

16 neutralized   

v.使失效( neutralize的过去式和过去分词 )；抵消；中和；使（一个国家）中立化

参考例句：

• Acidity in soil can be neutralized by spreading lime on it. 土壤的酸性可以通过在它上面撒石灰来中和。 来自《简明英汉词典》
• This strategy effectively neutralized what the Conservatives had hoped would be a vote-winner. 这一策略有效地冲淡了保守党希望在选举中获胜的心态。 来自《简明英汉词典》

17 accredited   

adj.可接受的；可信任的；公认的；质量合格的v.相信( accredit的过去式和过去分词 )；委托；委任；把…归结于

参考例句：

• The discovery of distillation is usually accredited to the Arabs of the 11th century. 通常认为，蒸馏法是阿拉伯人在11世纪发明的。
• Only accredited journalists were allowed entry. 只有正式认可的记者才获准入内。

18 equilibrium   

n.平衡，均衡，相称，均势，平静

参考例句：

• Change in the world around us disturbs our inner equilibrium.我们周围世界的变化扰乱了我们内心的平静。
• This is best expressed in the form of an equilibrium constant.这最好用平衡常数的形式来表示。

19 clogs   

木屐； 木底鞋，木屐( clog的名词复数 )

参考例句：

• Clogs are part of the Netherlands national costume. 木屐是荷兰民族服装的一部分。
• Clogs are part of the Dutch traditional costume. 木屐是荷兰传统装束的一部分。

20 premium   

n.加付款；赠品；adj.高级的；售价高的

参考例句：

• You have to pay a premium for express delivery.寄快递你得付额外费用。
• Fresh water was at a premium after the reservoir was contaminated.在水库被污染之后，清水便因稀而贵了。

21 frankly   

adv.坦白地，直率地；坦率地说

参考例句：

• To speak frankly, I don't like the idea at all.老实说，我一点也不赞成这个主意。
• Frankly speaking, I'm not opposed to reform.坦率地说，我不反对改革。

22 bounties   

（由政府提供的）奖金( bounty的名词复数 )； 赏金； 慷慨； 大方

参考例句：

• They paid bounties for people to give up their weapons. 他们向放下武器的人发放赏金。
• This foundation provided bounties of more than 5 million last year. 去年该基金会赠款达五百万元以上。

23 banish   

vt.放逐，驱逐；消除，排除

参考例句：

• The doctor advised her to banish fear and anxiety.医生劝她消除恐惧和忧虑。
• He tried to banish gloom from his thought.他试图驱除心中的忧愁。

24 attentive   

adj.注意的，专心的；关心(别人)的，殷勤的

参考例句：

• She was very attentive to her guests.她对客人招待得十分周到。
• The speaker likes to have an attentive audience.演讲者喜欢注意力集中的听众。

25 investigation   

n.调查，调查研究

参考例句：

• In an investigation,a new fact became known, which told against him.在调查中新发现了一件对他不利的事实。
• He drew the conclusion by building on his own investigation.他根据自己的调查研究作出结论。

26 determined   

adj.坚定的；有决心的

参考例句：

• I have determined on going to Tibet after graduation.我已决定毕业后去西藏。
• He determined to view the rooms behind the office.他决定查看一下办公室后面的房间。

27 compensate   

vt.补偿，赔偿；酬报 vi.弥补；补偿；抵消

参考例句：

• She used her good looks to compensate her lack of intelligence. 她利用她漂亮的外表来弥补智力的不足。
• Nothing can compensate for the loss of one's health. 一个人失去了键康是不可弥补的。

28 undertaking   

n.保证，许诺，事业

参考例句：

• He gave her an undertaking that he would pay the money back with in a year.他向她做了一年内还钱的保证。
• He is too timid to venture upon an undertaking.他太胆小，不敢从事任何事业。

29 participation   

n.参与，参加，分享

参考例句：

• Some of the magic tricks called for audience participation.有些魔术要求有观众的参与。
• The scheme aims to encourage increased participation in sporting activities.这个方案旨在鼓励大众更多地参与体育活动。

30 treasury   

n.宝库；国库，金库；文库

参考例句：

• The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
• This book is a treasury of useful information.这本书是有价值的信息宝库。

31 remains   

n.剩余物，残留物；遗体，遗迹

参考例句：

• He ate the remains of food hungrily.他狼吞虎咽地吃剩余的食物。
• The remains of the meal were fed to the dog.残羹剩饭喂狗了。

32 specious   

adj.似是而非的；adv.似是而非地

参考例句：

• Such talk is actually specious and groundless.这些话实际上毫无根据，似是而非的。
• It is unlikely that the Duke was convinced by such specious arguments.公爵不太可能相信这种似是而非的论点。

33 maxim   

n.格言，箴言

参考例句：

• Please lay the maxim to your heart.请把此格言记在心里。
• "Waste not,want not" is her favourite maxim.“不浪费则不匮乏”是她喜爱的格言。

34 reimbursed   

v.偿还，付还( reimburse的过去式和过去分词 )

参考例句：

• Any out-of-pocket expenses incurred on the firm's business will be reimbursed. 由公司业务产生的开销都可以报销。 来自《简明英汉词典》
• Employees are reimbursed for any legal fees incurred when they relocate. 员工调往异地工作时，他们可以报销由此产生的所有法律服务费用。 来自《简明英汉词典》

35 reimbursement   

n.偿还，退还

参考例句：

• He received reimbursement for his travel expenses.由于出差的花费他可以得到公司的补偿。
• Which forms do I need to complete for my travel reimbursement?我需要填什么表来报我的旅费？