Page:Indian Journal of Economics Volume 2.djvu/273

PRINOIPLE$ OF FINANOE selves, or be taxed, to a higher percentage of the taxable capacity, because the satisfaction they immediately set from the increas9cl taxation will for most people be greater than the enjoyment lost of the superfiuities they would have to forego. For almost all people there would be at least a considerable compensatory effect. Expenditure of the remaining four classes all tends sooner or later to increase the taxable capacity, in many cases to a very considerable extent. Let us them in take happiness such as greatly physical increa. secl separately. Expenditure the surroundings of sanitation and better efficiency in for health and life (class no. 2), housing, produces mental as well as few work, and thus in the course of a years increases the taxable capacity by two or three hundred per cent more than the increased taxation necessary to pay for the sanitation, or the inevitable cost to the sta?e of the better housing for the working classes. The third class?expencliture which is immecli- ately the minister taxable has economically capacity only to productive--obviously increases immediately, and the finance consider how the additional taxation necessary is to be assessed so that it is paid as far as possible by those persons who reap a particular benefit from the expenditure. Even if they cannot be distinguished a.nd. reached by a special tax, the expenditure remains beneficial, and may be met by an increase of general revenues. This is particularly justified if benefits from this class of expenditure are constantly bein? ?iven to different classes of the population and different localities. Expenditure of the fourth class, such as that on most of the lar?er kinds of public works, and all such as requires many years to reach its full economic productivity, combines with expenditure o! .th.e fifth class, like education, in having a charac- termtic effect on taxable capacity. For the first few