It is a singular advantage of taxes on articles of consumption that they contain in their own nature a security against excess. They prescribe their own limit, which cannot be exceeded without defeating the end purposed - that is, an extension of the revenue.
Interpretation
Consumption taxes limit excessive spending by defining boundaries for revenue generation.
The quote highlights the inherent benefit of consumption taxes, which are designed to prevent overindulgence while simultaneously facilitating government revenue. By imposing taxes on goods and services, these taxes create a natural check on excessive consumption; if consumers were to exceed the limits set by these taxes, their spending would ultimately lead to a reduction in revenue, undermining the very purpose of these taxes. In essence, taxes on consumption serve both as a regulatory measure and a tool for economic stability.
In practice
In a discussion about fiscal policy, this quote can be used to illustrate the nature of consumption taxes.
When men, engaged in unjustifiable pursuits, are aware that obstructions may come from a quarter which bare apprehension of opposition from doing what they would with eagerness rush into if no such external impediments were to be feared.
The tendency of a national bank is to increase public and private credit. The former gives power to the state, for the protection of its rights and interests: and the latter facilitates and extends the operations of commerce among individuals. Industry is increased, commodities are multiplied, agriculture and manufacturers flourish: and herein consists the true wealth and prosperity of a state.
It's not tyranny we desire; it's a just, limited, federal government.
The Achaeans soon experienced, as often happens, that a victorious and powerful ally is but another name for a master.
The people are turbulent and changing; they seldom judge right or make good decision.
The true principle of a republic is that the people should choose whom they please to govern them. Representation is imperfect, in proportion as the current of popular favor is checked. The great source of free government, popular election, should be perfectly pure, and the most unbounded liberty allowed.
Our economy is the result of millions of decisions we all make every day about producing, earning, saving, investing, and spending.
Most of the big banks were shot through with short-termism, deceptive practices and self-dealing. We must institute basic changes in corporate governance and in management practice to restore responsibility and honesty for the sake of the economy and for the self-respect of the country.
It is better that a man should tyrannize over his bank balance than over his fellow-citizens and whilst the former is sometimes denounced as being but a means to the latter, sometimes at least it is an alternative.
The real bosses, in the capitalist system of market economy, are the consumers.
In the 1930s, unemployed working people could anticipate that their jobs would come back.
Our mission, as set forth by the Congress is a critical one: to preserve price stability, to foster maximum sustainable growth in output and employment, and to promote a stable and efficient financial system that serves all Americans well and fairly.
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