--- ENTITY: public revenue ---

# Public Revenue

## Definition

The income derived by the sovereign or commonwealth from various sources to
defray the necessary expenses of government, including defense, maintaining
the dignity of the chief magistrate, and other governmental costs not provided
for by particular revenues.

## Source Chapter

Book V, Chapter 2

## Context

The chapter's central focus, examining how governments obtain funds to support
their operations. Smith distinguishes between revenues that peculiarly belong
to the sovereign (such as stock, land, and commercial enterprises) and those
that must be drawn from the people through taxation.

## Economic Domain

General Theory

---
--- ENTITY: sovereign revenue sources ---

# Sovereign Revenue Sources

## Definition

The distinct funds or mechanisms through which a sovereign or commonwealth
may generate income independently of the general population, including stock,
land, and commercial enterprises that can be directly managed by the state.

## Source Chapter

Book V, Chapter 2

## Context

Smith categorizes these as the first type of public revenue, distinguishing them
from taxes that must be drawn from the people. He examines various sovereign
revenue sources including public banks, post offices, and crown lands.

## Economic Domain

General Theory

---
--- ENTITY: public bank revenue ---

# Public Bank Revenue

## Definition

The income generated by a sovereign through the operation of a public bank,
derived from the difference between the interest charged on loans and the
interest paid on deposits, plus any management fees and profits from banking
operations.

## Source Chapter

Book V, Chapter 2

## Context

Smith discusses how public banks in cities like Hamburg, Venice, and Amsterdam
have provided revenue to their respective governments, noting that such
institutions require careful management to be successful.

## Economic Domain

General Theory

---
--- ENTITY: post-office revenue ---

# Post-Office Revenue

## Definition

The income generated by a sovereign through the operation of a postal system,
derived from fees charged for carrying letters and parcels, which can provide
both public service and profit to the state.

## Source Chapter

Book V, Chapter 2

## Context

Smith identifies the post-office as a mercantile project that has been
successfully managed by various governments, noting its advantages of requiring
moderate capital, having certain returns, and providing immediate payment.

## Economic Domain

General Theory

---
--- ENTITY: crown lands revenue ---

# Crown Lands Revenue

## Definition

The income derived by a sovereign from the rent and produce of lands owned
directly by the state, which historically constituted a major portion of
royal revenue in many European monarchies.

## Source Chapter

Book V, Chapter 2

## Context

Smith examines how rent from crown lands has been a principal source of public
revenue for many nations, particularly in ancient times, and discusses how the
management of such lands affects their productivity and the revenue they
generate.

## Economic Domain

General Theory

---
--- ENTITY: land tax ---

# Land Tax

## Definition

A tax levied on the rent or value of land, which may be assessed either
according to a fixed valuation or varied with changes in the actual rent of
the land, and which can be a significant source of public revenue.

## Source Chapter

Book V, Chapter 2

## Context

Smith analyzes different methods of assessing land taxes, comparing the
English system of fixed valuation with more variable systems, and discusses
the advantages and disadvantages of each approach for both the government
and landowners.

## Economic Domain

General Theory

---
--- ENTITY: house rent tax ---

# House Rent Tax

## Definition

A tax imposed on the rent of houses, which falls partly upon the inhabitants
who pay it and partly upon the owners of the ground, with the final burden
distributed between them based on the relative value of building rent versus
ground rent.

## Source Chapter

Book V, Chapter 2

## Context

Smith distinguishes between building rent (the profit on capital expended in
building) and ground rent (the price for the use of land), explaining how a
tax on house rent affects each component differently and ultimately falls
more heavily on the rich.

## Economic Domain

General Theory

---
--- ENTITY: ground rent tax ---

# Ground Rent Tax

## Definition

A tax specifically levied on the rent of land upon which buildings stand,
which falls entirely upon the owner of the ground as a monopolist who exacts
the maximum rent possible for the use of his land.

## Source Chapter

Book V, Chapter 2

## Context

Smith argues that ground rents are particularly suitable for taxation because
they arise from the good government of the sovereign rather than from any
effort by the landowner, and such a tax would not discourage industry or
improvement.

## Economic Domain

General Theory

---
--- ENTITY: window tax ---

# Window Tax

## Definition

A tax imposed on houses based on the number of windows they contain, which
was intended to be a more convenient method of assessment than previous taxes
but proved to be unequal in its burden on different social classes.

## Source Chapter

Book V, Chapter 2

## Context

Smith discusses the window tax as an example of how taxes on houses have been
implemented in England, noting its advantages in ease of assessment but
criticizing its inequality in falling more heavily on the poor than the rich.

## Economic Domain

General Theory

---
--- ENTITY: stock profit tax ---

# Stock Profit Tax

## Definition

A tax levied on the profits derived from the employment of capital in various
trades and businesses, which ultimately falls upon the consumers of the goods
produced rather than the dealers themselves.

## Source Chapter

Book V, Chapter 2

## Context

Smith explains that taxes on the profits of stock cannot affect the interest
of money itself but must be passed on to consumers through higher prices, and
discusses how such taxes affect different branches of trade unequally.

## Economic Domain

General Theory

---
--- ENTITY: interest of money tax ---

# Interest of Money Tax

## Definition

A tax imposed on the revenue derived from lending money at interest, which
cannot raise the rate of interest itself but must be borne by the lender
through reduced returns or passed on to borrowers through higher borrowing costs.

## Source Chapter

Book V, Chapter 2

## Context

Smith argues that the interest of money is a less proper subject for direct
taxation than land rent because the amount of capital is difficult to
ascertain and can be easily moved between countries, making such taxation
inefficient and potentially harmful.

## Economic Domain

General Theory

---
--- ENTITY: capitation tax ---

# Capitation Tax

## Definition

A tax levied on individuals regardless of their wealth or income, typically
assessed according to rank or supposed fortune, which tends to be arbitrary
and unequal in its burden on different social classes.

## Source Chapter

Book V, Chapter 2

## Context

Smith criticizes capitation taxes as being either arbitrary when proportioned
to fortune or unequal when proportioned to rank, and discusses how such taxes
have been implemented in various countries with different degrees of severity.

## Economic Domain

General Theory

---
--- ENTITY: tax on consumable commodities ---

# Tax on Consumable Commodities

## Definition

A tax imposed on goods that are consumed, which may be levied either on the
consumer through periodic licenses or on the dealer before the goods reach
the consumer, and which falls ultimately on the revenue of those who consume
the taxed commodities.

## Source Chapter

Book V, Chapter 2

## Context

Smith examines various types of taxes on consumable commodities, distinguishing
between those on necessaries and luxuries, and discusses how such taxes affect
different classes of society and the overall economy.

## Economic Domain

General Theory

---
--- ENTITY: tax on necessaries ---

# Tax on Necessaries

## Definition

A tax imposed on goods that are essential for life or considered necessary
by social custom, which raises the price of these goods and consequently the
wages of labour, ultimately falling on landlords through reduced rent and
on consumers through higher prices.

## Source Chapter

Book V, Chapter 2

## Context

Smith argues that taxes on necessaries are particularly burdensome because
they affect the poor most heavily and raise the cost of production throughout
the economy, making them less desirable than taxes on luxuries.

## Economic Domain

General Theory

---
--- ENTITY: tax on luxuries ---

# Tax on Luxuries

## Definition

A tax imposed on goods that are not essential for life and whose consumption
is optional, which falls directly on the consumers of these goods without
affecting the wages of labour or the prices of other commodities.

## Source Chapter

Book V, Chapter 2

## Context

Smith considers taxes on luxuries to be more equitable than taxes on necessaries
because they are paid voluntarily by those who choose to consume such goods,
and they do not have the broader economic effects of raising wages or prices.

## Economic Domain

General Theory

---
--- ENTITY: excise duties ---

# Excise Duties

## Definition

Taxes imposed on goods produced domestically for home consumption, typically
on a few articles of general use, which are levied by government administration
and provide a significant portion of public revenue.

## Source Chapter

Book V, Chapter 2

## Context

Smith discusses excise duties as a major source of revenue, examining their
advantages in terms of certainty and convenience of collection, while also
noting their tendency to discourage certain branches of industry and encourage
smuggling.

## Economic Domain

General Theory

---
--- ENTITY: customs duties ---

# Customs Duties

## Definition

Taxes imposed on goods imported from foreign countries, which historically
were intended to tax the profits of merchants but now serve primarily as a
source of revenue and sometimes as instruments of monopoly or trade regulation.

## Source Chapter

Book V, Chapter 2

## Context

Smith traces the history of customs duties from their origins as taxes on
merchant profits to their current role in revenue generation, and critiques
their use as instruments of monopoly rather than revenue.

## Economic Domain

General Theory

---
--- ENTITY: stamp duties ---

# Stamp Duties

## Definition

Taxes imposed on legal documents and transfers of property, requiring that
certain papers bear stamps of specified values, which generate revenue from
the transference of property from the dead to the living or from the living
to the living.

## Source Chapter

Book V, Chapter 2

## Context

Smith examines stamp duties as a method of taxing property transfers, noting
their advantages in certainty and low collection costs, while also discussing
their tendency to diminish the capital value of property and discourage
productive investment.

## Economic Domain

General Theory

---
--- ENTITY: registration duties ---

# Registration Duties

## Definition

Taxes imposed on the official recording of legal documents and property
transfers, which generate revenue from the administrative process of
registering deeds, mortgages, and other legal instruments.

## Source Chapter

Book V, Chapter 2

## Context

Smith discusses registration duties alongside stamp duties as methods of
taxing property transfers, noting their advantages in security for creditors
and purchasers, but also their potential for abuse when registration offices
are multiplied for revenue purposes.

## Economic Domain

General Theory

---
--- ENTITY: tax administration systems ---

# Tax Administration Systems

# Tax Administration Systems

## Definition

The organizational structures and methods by which taxes are collected,
including direct government administration versus farming taxes to private
contractors, which significantly affect the efficiency, cost, and fairness
of tax collection.

## Source Chapter

Book V, Chapter 2

## Context

Smith compares different systems of tax administration, arguing that direct
government collection is generally more efficient and less burdensome than
farming taxes to private contractors, who seek excessive profits at public
expense.

## Economic Domain

General Theory

---
--- ENTITY: tax farming ---

# Tax Farming

## Definition

The practice of leasing the right to collect taxes to private individuals or
companies for a fixed rent, who then profit from any amount they collect above
that rent, often leading to excessive and oppressive collection methods.

## Source Chapter

Book V, Chapter 2

## Context

Smith criticizes tax farming as an inefficient and oppressive method of
revenue collection that encourages corruption, excessive enforcement, and
the extraction of profits by farmers at the expense of the public.

## Economic Domain

General Theory

---
--- ENTITY: public warehouse system ---

# Public Warehouse System

## Definition

A system for collecting customs duties where imported goods are stored in
government-controlled warehouses until duties are paid, allowing for more
efficient collection and reduced smuggling opportunities.

## Source Chapter

Book V, Chapter 2

## Context

Smith proposes this system as a reform to improve customs collection, arguing
that it would reduce the expense of collection, prevent smuggling more
effectively, and allow for the simplification of customs duties.

## Economic Domain

General Theory

---
--- ENTITY: four maxims of taxation ---

# Four Maxims of Taxation

## Definition

Smith's four principles for good taxation: equality (proportional to ability),
certainty (clear and not arbitrary), convenience (paid at convenient times
and in convenient ways), and economy (minimal collection costs and economic
distortion).

## Source Chapter

Book V, Chapter 2

## Context

Smith presents these four maxims as the fundamental criteria by which all
taxes should be judged, using them throughout his analysis of different tax
types to evaluate their relative merits and defects.

## Economic Domain

General Theory

---
--- ENTITY: equality in taxation ---

# Equality in Taxation

## Definition

The principle that taxes should be proportional to the ability of taxpayers
to pay, meaning that individuals should contribute to public expenses in
proportion to their respective revenues or incomes under state protection.

## Source Chapter

Book V, Chapter 2

## Context

Smith identifies this as the first of his four maxims, arguing that equality
in taxation is essential for fairness and social stability, though he
acknowledges that perfect equality is difficult to achieve in practice.

## Economic Domain

General Theory

---
--- ENTITY: certainty in taxation ---

# Certainty in Taxation

## Definition

The principle that the amount, time, and manner of tax payment should be
clear and unambiguous to both the taxpayer and others, preventing arbitrary
assessment and reducing opportunities for corruption.

## Source Chapter

Book V, Chapter 2

## Context

Smith identifies this as the second of his four maxims, arguing that
certainty in taxation is crucial for preventing oppression and corruption,
even if it means accepting some degree of inequality.

## Economic Domain

General Theory

---
--- ENTITY: convenience in taxation ---

# Convenience in Taxation

## Definition

The principle that taxes should be levied at times and in ways that are most
convenient for taxpayers to pay, minimizing disruption to their economic
activities and financial circumstances.

## Source Chapter

Book V, Chapter 2

## Context

Smith identifies this as the third of his four maxims, arguing that
convenience in taxation reduces the burden on taxpayers and increases the
likelihood of compliance.

## Economic Domain

General Theory

---
--- ENTITY: economy in taxation ---

# Economy in Taxation

## Definition

The principle that the collection of taxes should be accomplished with
minimal expense and economic distortion, ensuring that the cost of collection
does not exceed the revenue generated and that taxes do not unnecessarily
discourage productive activity.

## Source Chapter

Book V, Chapter 2

## Context

Smith identifies this as the fourth of his four maxims, arguing that
economic efficiency in taxation is essential for maximizing revenue while
minimizing the burden on the economy.

## Economic Domain

General Theory