To make it otherwise, interest on capital
would have to increase progressively in the same ratio as the tax
itself, which is absurd. Therefore the progressive tax stops the
creation of capital; furthermore it hinders its circulation.
Whoever, in fact, should want to buy a plant for any enterprise
or a piece of land for cultivation would have to consider, under
the system of progressive taxation, not the real value of such
plant or land, but rather the tax which it would bring upon him;
so that, if the real income were four per cent., and, by the
effect of the tax or the condition of the buyer, must go down to
three, the purchase could not be effected. After having run
counter to all interests and thrown the market into confusion by
its categories, the progressive tax arrests the development of
wealth and reduces venal value below real value; it contracts, it
petrifies society. What tyranny! What derision!
The progressive tax resolves itself, then, whatever may be done,
into a denial of justice, prohibition of production,
confiscation.
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