quired that transactions should pass through the hands of officials (1771).1 In the present dynasty, the tax on title-deeds was fixed at three per cent ad valorem (2198 A. K. or 1647 A. D.) Since 2286 A. K. (1735 A. D.) mortgages have not been taxed. In 2340 A. K. (1789 A. D.) the time-limit for paying the tax was fixed at one year. But this tax does not produce any great revenue; for the purchasers of lands and houses are not compelled to have their deeds stamped, because when they do so, they may conceal the acreage or the price, and because the clerks and officials are often corrupt. Moreover, the law itself is not good, since it fixes a certain amount for certain districts or provinces. In 2458 A. K. (1907 A. D.) the stamp tax was enacted. While there were different rates for different transactions, the general rate was .2 per cent upon a transaction whose value was above ten thousand copper coins. But this act has not been universally put in force. VI. CONCLUSION To the extent that a state needs revenue, it cannot follow strictly the principles of Confucius for the abolition of all indirect taxes. But, to conform to his ideas, and at the same time to supply the fiscal needs of the state, we might adopt this program: China should abolish all customs duties on internal trade, leaving only those on imports and exports; it should abolish all excise taxes in general, except a very few on special products. Transactions should not be taxed at all. There should be no stamp tax. The business tax and the license tax should be changed to direct taxes, so as to make them taxes on net income In these ways indirect taxes could be reduced to a minimum. As regards direct taxes, we might adopt this program: 1General Research, ch. xix. The poll tax, family tax, and general property tax, which China abolished long ago, should not be revived. The land tax should remain, and the house tax should be universally adopted. The income tax should be highly developed, and the inheritance tax should be re-introduced. In short, China should tax income rather than property. As to her financial system as a whole, China must make a radical change and make her system conform to the principles of modern finance, modified to suit the customs, ideals, and economic needs of the Chinese people. CHAPTER XXXVI CONCLUSION SINCE we have discussed and criticized topic by topic, all the subjects which we have considered, it remains only for this final chapter to bring together our conclusions. According to the order we have adopted, we should first say something about consumption. Confucius prescribed different standards for different classes-somewhat as in a sumptuary law. There is no doubt that this has checked. economic development to a certain extent. But the fundamental idea of Confucius' sumptuary regulations was not so much social as economic. He feared that the production of wealth would not be sufficient for everyone if everyone extended his wants without restraint. He perceived the law of diminishing returns, and his idea was justified by the fact that in ancient times production was on a very limited scale. Again, under the monarchical government of the old type, a sumptuary law was necessary for the preservation of social classes. Moreover, since Confucius permitted anyone to raise himself to the higher classes, everyone might consume more as his social standing became higher. Therefore, sumptuary regulations do not really prevent economic development, provided the individual is capable of elevating himself. The word noble and the word rich are interchangeable. In Chinese history the sumptuary regulations have had little or no effect, and rich people may consume anything except a few things connected with official distinctions. We must therefore seek the explanation for the stationary production of China in other causes. Con |