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# 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

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