Chap。III
HowproportionalTaxesaredrawnbackbytheIndustriousandhowthatdrawingbackistheonlyreasonwhyTaxesraisethePricesofCommoditiesWhatperplexesournotionsinthetheoryofproportionaltaxation，is，thattheindustriousman，insteadofbringinghissurplusonly，tomarket，isobligedtobringthewholeofhiswork。
Letmethereforerepresenthimasbeingcreditorupononepartofhiswork，andproprietoroftheother。Thiswilldivideit，asitwere，intotwoparts，whichIshallcallAandB。
Arepresentsthatpartuponwhichheiscreditor，andanswerstoalltheexpencehehasalreadybeenat；thatis，tohisphysical-necessary，aswehavecalledit。Thiswehavesaidoughttobeconsideredasvirtuallyconsumedbytheworkman，andifanytaxberaiseduponit，itmustbedoneinsuchamannerasnottoaffecthim；thatis，hemustdrawittotallybackfromthepersontowhomhedisposesofit。Bontheotherhand，representsthatpartofwhichheisproprietor，towit，hisprofit；andthereforemayeitherbetaxedornot，asthestateshallthinkfit。
Ifthisbetaxedinthehandsoftheindustriousman，beforeitsufferanalienation，thetaxwillbeofacumulativenature。