Editing John Stuart Mill (section)

====Theories of wealth and income distribution====
In ''[[Principles of Political Economy]]'', Mill offered an analysis of two economic phenomena often linked together: the laws of production and wealth and the modes of its distribution. Regarding the former, he believed that it was not possible to alter to laws of production, "the ultimate properties of matter and mind... only to employ these properties to bring about events we are interested."<ref>{{cite book |last1=Mill |first1=John Stuart |title=Principles of Political Economy |date=1885 |publisher=D. Appleton and Company |location=New York}}</ref> The modes of [[distribution of wealth]] is a matter of human institutions solely, starting with what Mill believed to be the primary and fundamental institution: Individual Property.<ref>{{cite journal |last1=Jensen |first1=Hans |title=John Stuart Mill's Theories of Wealth and Income Distribution |journal=Review of Social Economy |date=December 2001 |volume=59 |issue=4 |pages=491–507|doi=10.1080/00346760110081599 |s2cid=145340813 }}</ref> He believed that all individuals must start on equal terms, with division of the instruments of production fairly among all members of society. Once each member has an equal amount of individual property, they must be left to their own exertion not to be interfered with by the state. Regarding [[Economic inequality|inequality of wealth]], Mill believed that it was the role of the government to establish both [[Social policy|social]] and [[economic policies]] that promote the equality of opportunity.

The government, according to Mill, should implement three tax policies to help alleviate poverty:<ref name="Ek&Tol">{{cite journal|last1=Ekelund|first1=Robert|last2=Tollison|first2=Robert|date=May 1976|title=The New Political Economy of J. S. Mill: Means to Social Justice|journal=The Canadian Journal of Economics|volume=9|issue=2|pages=213–231|doi=10.2307/134519|jstor=134519}}</ref>

# fairly assessed [[income tax]];
# an [[inheritance tax]]; and
# a [[Sumptuary law|policy to restrict sumptuary consumption]].

[[Inheritance]] of capital and wealth plays a large role in development of inequality, because it provides greater opportunity for those receiving the inheritance. Mill's solution to inequality of wealth brought about by inheritance was to implement a greater tax on inheritances, because he believed the most important authoritative function of the government is [[taxation]], and taxation judiciously implemented could promote equality.<ref name="Ek&Tol" />