Skilled. On Unskilled.
Skilled wages are at a monopoly price, and taxes on them are paid by the laborers, so long as wages are not reduced below their just proportion.
Unskilled wages. (1) Population diminished by it. Paid by profits. (2) Population left stationary. Shared between profits and wages. (3) Population increasing in spite of it. Falls entirely on wages.
Taxes on Profits. May possible stimulate production, and is then a good all round, contributing to the state, and leaving no one any poorer. If not, if profits are really diminished by the tax, capital may be diminished also.
This (a) may, or (b) may not diminish population. If (a), then the margin of cultivation ceases to be extended, and part of the tax, pro tanto, falls on the landlords. If (b), then wages fall, and part of the tax falls on the laborer. Total result is a nearer approach to the stationary state.
Taxes on Expenditure are open to the same