---
entity_slug: economy_in_taxation
evaluator: null
evaluated_at: '2026-02-23T05:22:23.331576'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly captures a distinct principle about minimizing
    collection costs and economic distortion in taxation. It avoids circularity and
    specifies measurable criteria (cost not exceeding revenue, avoiding discouragement
    of productive activity).
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This directly corresponds to Smith's fourth maxim of taxation as explicitly
    stated in Book V, Chapter 2. Smith indeed emphasizes that taxes should be collected
    efficiently without excessive administrative costs or economic interference.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the appropriate domain placement as this represents
    one of Smith''s fundamental theoretical principles of taxation rather than a specific
    application or institutional arrangement. It belongs squarely in his systematic
    treatment of tax theory.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This principle has some relevance to S3 (internal regulation/audit) regarding
    efficient resource allocation and monitoring, but it's primarily a normative guideline
    rather than a structural system component. It's more of a design principle than
    a functional system element.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: "This entity illuminates an important mechanism in Smith's tax theory\u2014\
    the relationship between collection efficiency and overall economic welfare. It\
    \ explains how taxation design affects both government revenue and economic productivity,\
    \ providing genuine analytical insight beyond mere description."
---

# Evaluation: Economy In Taxation

## definition_precision — 4.0 / 5.0

The definition clearly captures a distinct principle about minimizing collection costs and economic distortion in taxation. It avoids circularity and specifies measurable criteria (cost not exceeding revenue, avoiding discouragement of productive activity).

## source_grounding — 5.0 / 5.0

This directly corresponds to Smith's fourth maxim of taxation as explicitly stated in Book V, Chapter 2. Smith indeed emphasizes that taxes should be collected efficiently without excessive administrative costs or economic interference.

## domain_placement — 5.0 / 5.0

"General Theory" is the appropriate domain placement as this represents one of Smith's fundamental theoretical principles of taxation rather than a specific application or institutional arrangement. It belongs squarely in his systematic treatment of tax theory.

## vsm_relevance — 3.0 / 5.0

This principle has some relevance to S3 (internal regulation/audit) regarding efficient resource allocation and monitoring, but it's primarily a normative guideline rather than a structural system component. It's more of a design principle than a functional system element.

## explanatory_value — 4.0 / 5.0

This entity illuminates an important mechanism in Smith's tax theory—the relationship between collection efficiency and overall economic welfare. It explains how taxation design affects both government revenue and economic productivity, providing genuine analytical insight beyond mere description.
