Functional socialism

70 FUNCTIONAL SOCIALISM

been decided by the House of Commons, a precept will be issued by the Chancellor directly upon the Economic Authority or upon the several functional bodies, whichever policy may decide or convenience dictate.

As the average man, sometimes with restricted vision but generally with sound sense, likes to know what his personal liability, in tax or rates, is likely to be when new policies are adumbrated, it is incumbent upon all the advocates of far-reaching changes frankly to face the cost as expressed in taxation. I have noticed, not without amusement, that many replanning proposals conveniently omit any reference to the national exchequer. We are apt, too, to forget that taxation is closely bound up with our political history. Let us then refresh our memories.

THE PRINCIPLES OF MODERN TAXATION

The crucial moment in the development of taxation was, of course, the struggle and final triumph of the principle that there shall be no taxation without representation. Pym, Hampden, and the others settled that issue. The principles of modern taxation we owe to Adam Smith, with variations from Bentham and Mill. Smith elaborated four classic maxims. Shortly put they were:

(1) The subjects of a State ought to contribute towards the support of the Government in proportion to their respective abilities.

(2) Taxes should be certain and not arbitrary.