683 B
683 B
Anticipation of Taxes
Definition
The practice of borrowing against future tax revenues before those revenues are actually collected, typically through arrangements with banks or financial institutions that advance money against expected tax receipts.
Source Chapter
Book V, Chapter 3
Context
Smith describes how governments regularly anticipate their annual land and malt taxes through borrowing clauses in the acts that impose them, creating a cycle where current revenue is spent before it is received.
Economic Domain
Regulation