11: Tithes

Tithes differ from taxes on rent in that the tithe is charged based on the product of the land. If the land produces nothing, no tithe is assessed. As such, tithes are considered a fairer apportionment than taxes on acreage, as those who generate the greatest profit of land pay the greater share of taxes. They also do not discourage the cultivation of difficult land, as one who works land that yields less product pays less in taxes. They also enable those stricken by misfortune, such as a poor harvest, to pay less in taxes than they would during normal times.

Tithes are also similar to taxes on the sale of commodities, except that they are fixed. The farmer pays a per-unit fee for his produce regardless of the price it fetches in the marketplace. To the producer, the tithe is more predictable, but to the state, more variable.

The chief objection to tithes is that they are not fixed at a given rate, but are visited more heavily on less efficient producers. That is to say that the more product one creates, the easier it is to bear the burden of taxes.

In a developing economy, the net produce of a land is constantly increasing; in a mature economy, the amount produced begins to level out; and where an economy transitions from agriculture to industry, the aggregate amount of tithes on domestic product decrease.

Tithes have also been characterized as "a bounty on importation" - in effect, they add the cost of taxes to domestic product but do not increase the cost of imported product. Customers, having a desire for cloth at the lowest price, would them be given incentive to purchase foreign cloth instead. As such, any tithe on domestic product must be accompanied by a duty on imported product.

(EN: This would only be true if domestic goods was higher by an amount that is equal to or less than the tithe.)