My understanding is that tax farming is where a government outsources tax-raising to private business in return for a guaranteed income. The tax-farmer keeps the difference between what was raised and what was paid to the government. One advantage for the government is that the focus of unpopularity falls elsewhere. In Spain, Jews were often used as tax-farmers. Typically, all Jews are lumped together in this snippet.
THE Jews of Rotterdam have offered to farm the Revenues of Dublin at twenty thousand pounds per Annum. Several eminent Quakers are also willing to take them at that rent; but the undertaker has rejected their Proposals, being resolved to deal with none but Christians.
Jonathan Swift, John Hawkesworth, Deane Swift.
The works of Dr. Jonathan Swift, Dean of St. Patrick's, Dublin: Volume 13. 1768. Page 398
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