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# 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

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