VIII - Taxation and Revenue

The author disclaims any pretension to comprehensively resolve the complex tax and financial problem, instead aiming only to reinforce a specific political thesis that will influence these two matters.

It is beyond doubt that Portugal can still bear additional taxation without attacking the economic foundations of national life, contrary to what partisan interests falsely claim.

Those who deny Portugal's tax capacity, motivated by partisan interests, cause harm by increasing the deficit and forcing ever-harsher burdens on taxpayers, ultimately leading to financial death.

The author presents detailed statistics on the last land tax assessment across Portugal's continent and islands.

By comparing current taxable income with historical tithe collections from 1812, the author demonstrates that the nation's gross property production reached 50,000,000$000 réis even then.

The author argues that land production has increased due to population growth (from 2.8 to 4.3 million) and export commerce growth (from 5.5 to 20.1 million réis), demonstrating increased tax capacity.

The author uses per capita calculations of agricultural output to show the nation could not survive on such meager consumption, proving the tax base must be larger than official records suggest.

The author notes in passing that industrial contribution figures suggest Portugal lacks basic infrastructure and modern comforts, indicating undervaluation of economic activity.

The author concludes that public revenues can be increased through taxation, but criticizes how new levies constantly aggravate existing inequalities rather than distributing burden fairly.

The author argues that while tax increases are possible, raising taxes alone to close an 8 billion réis deficit would be madness, as it would paralyze the economy and ultimately reduce revenue.

The author demonstrates mathematically that to close an 8 billion réis deficit through taxation alone would require such a large increase that it would destroy economic activity and the ability to collect taxes.

The author raises the objection that budget economies combined with prudent tax increases might save the nation's finances.

The author responds that economies are good and necessary as routine governance, but insufficient to save the nation's finances.

The author criticizes how the word 'economy' has been weaponized as a political slogan to combat tax increases while wasting public confidence through false ideas.

The author uses rhetorical questions to establish that everyone agrees economies are desirable as a continuous government function.

The author identifies speculation (partisan interests) as responsible for making economies into an exclusive banner and falsely claiming they alone can solve the financial crisis.

The author acknowledges that economies are good policy but asks what economies can realistically cut from an 8 billion réis deficit, effectively proving the question.

Despite criticizing its political misuse, the author acknowledges the idea of economy is fundamentally sound and has produced some results despite efforts to discredit it.

Since taxes and economies alone are insufficient, only development of national wealth by expanding the tax base can solve the crisis.

Wealth can be developed through public confidence, which requires ending the detestable politics of recent years and restoring morality alongside material interests.

Over three years, despite creating 1.8 billion réis in new taxes, revenue grew only 1.2 billion—showing that lost confidence has diminished the nation's real economic forces.

The author calls for promoting national wealth development as the foundation before other measures.

The author cautions that wealth promotion should occur through careful application with moral support, not reckless spending that burdens public debt with unsustainable interest.

The author acknowledges that past administrations deserve credit for investing in public improvements necessary for national development.

However, the author suggests it would be prudent to slow the pace of public works spending to prevent the treasury from breaking before reaching stability.

The author presents detailed figures showing 46.5 billion réis spent on public works from 1852 to 1869 across roads, railways, and ports.

The author notes these expenditures show Portugal is not averse to civilization, though they have contributed to the deficit.

The author reiterates that only development of national wealth can sustain tax growth proportionally, smoothly, and sufficiently to prevent national ruin.