Wealth a Brief Explanation of the Causes of Economic Welfare

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When a State or a local authority possesses ordinary income -yielding property, such as Suez Canal shares or land let to individuals for a rent, there seems at first sight no reason to refuse the application of the name income to its receipts. On the other hand, we usually shrink from regarding receipts from taxes as income of the State which collects them. We make this distinction between the yield of property and the yield of taxes because we think there will be " double reckoning " if we TAX...ES 157 include taxes in income, and not if we only include the yield of property. We think we have already reckoned the yield of the taxes in the incomes of the people who pay them, while we have not reckoned the yield from the property in any one's income. But neither of these beliefs are quite so easily justified as we at first imagine. It is no doubt true that we should have double reckon- ing if we first reckoned individuals' incomes in the ordinary way without deduction for taxes, and then reckoned the gross or net yield of the income-tax as income to the State.

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