... classical analysis, a tax on wage goodswas generally to be passed on, implying that it increased the size of the wagefund), and the division of a given stock of capital between fixed and variablecapital.PROFITProfit, ... land, andincrements of rental value. The classical economists approached the analysis of taxation in two differentways. The first was taxation of factor rewards – wages, profits, and rent. The second ... elimination of rent from cost, hewrestled vainly with the problem of capital and the nature of profit. Torrensadopted a different approach and argued that relative amounts of capital, ratherthan...