Page:Indian Journal of Economics Volume 2.djvu/263

 PRINOIPLE$ OF FINANOE 251 a particular article of consumption, and thus by raising the price restrict tSe net expenditure on it, i.e., the expenditure excluding the tax, more than they restrict expenditure on other commodities. That, indeed,  is the general effect of taxes on consumption--they curtail the expenditur on the as the total outlay on particular the taxed article taxed; but article including the tax usually increases, there is a reduction of the income available' for expenditure on other commodities, and the expenditure is contracted in all as to maintain equal To complete this increased taxation on marginal utility. brief he directions so analysis of the effects of individual's distribution of his expendit. ure, we must; notice that saving for invest- ment, with a view to obtaining a future income or capital stun is an important direction o[ expenditure, the present marginal efficiency of which is by his estimate of his future needs, his care for the future, and the rate of interest to be determined intensity of marginal efficiency of expert- of children is determined Likewise the the education obtained. dRure on by anticipation of their needs, 'the intensity of the sense o! parental duty, and so forth. ' It' is unnecessary to 'consider further the primary effects of increased taxes on individuals. We may now enquire hat the social results will be; estimating at the same thne, so far as possible, under wha condi- tions, and how far, the individual may be actually benefited, remain unaffected, or even suffer by the social results. These latter are of two sharply contrasted which are consciously other organizations of kinds' (i) sought h those social results the Government or the community; and (ii)those which occur unconsciously and spontaneously as the resul of the tax, and are termed secondary reactions2 The first class, the t , J. Chapman, Outline of Political 'o,y (Longmarts), 2nd edition, .p. 400,