David Hume: Philosophical Historian of Tax Law

Abstract

The riches of Hume’s philosophical history yield an account of the national experience of taxation in England. Hume’s hallmark is scepticism. Scepticism’s implications in the public finance context are examined in the first main part of the chapter. Central to England’s national experience, for better or worse, are lawyers and the law. Hume accordingly reflects on the function of law in relation to taxation and on the nature of taxes themselves. This is the basis of the Humeian theory of taxation: a discussion of its implications forms the second part of the chapter. One function of tax law is to complement property law, the latter being nearly coincident with justice, justice for Hume originating in public utility. Tax law and property are mutually reinforcing, the dominant expedient quality of tax depending upon the justice manifested by property. This is the next level of the theory and it is discussed in the third part. English history discloses political settlements broken by the consequences of failing to recognise the issues arising at each of these levels. Particular questions emerging from the wealth of Hume ’s historical illustrations — the final level of his theory — are discussed in the fourth and last part.The riches of Hume’s philosophical history yield an account of the national experience of taxation in England. Hume’s hallmark is scepticism. Scepticism’s implications in the public finance context are examined in the first main part of the chapter. Central to England’s national experience, for better or worse, are lawyers and the law. Hume accordingly reflects on the function of law in relation to taxation and on the nature of taxes themselves. This is the basis of the Humeian theory of taxation: a discussion of its implications forms the second part of the chapter. One function of tax law is to complement property law, the latter being nearly coincident with justice, justice for Hume originating in public utility. Tax law and property are mutually reinforcing, the dominant expedient quality of tax depending upon the justice manifested by property. This is the next level of the theory and it is discussed in the third part. English history discloses political settlements broken by the consequences of failing to recognise the issues arising at each of these levels. Particular questions emerging from the wealth of Hume ’s historical illustrations — the final level of his theory — are discussed in the fourth and last part.