As soon as new and larger sources of income are created, the cry of the consumers for relief will be louder than ever, and since a large part of consumption is that of the capitalists in manufacture, the cry will be heard.

This will mean lower prices.

But in the long run salaries and wages accommodate themselves to prices, so that this reform, beneficial as it may be, cannot be accepted as meaning, for the masses, more than a merely temporary relief.

A third form of tax reduction would be the special exemption of the poorer classes from even the smallest direct taxation.

But as employers and wage boards, in fixing wages, will take this reduction into account, as well as the lower prices and rents, such exemptions will effect no great or lasting change in the division of the national income between capitalists and receivers of salaries and wages.
A third way in which the new and vastly increased incomes of the national and local governments can be expended is the communistic way, as in developing commercial and technical education, in protecting the public health, in building model tenements, in decreasing the cost of traveling for health or business, and in promoting all measures that are likely to increase industrial efficiency and profits without too great cost.
A fourth way in which the new revenue may be expended, before the Socialists are in actual or practical control, would be in somewhat increasing the wages and somewhat shortening the hours of the State and municipal employees, who will soon constitute a very large proportion of the community.