694 lines
16 KiB
Markdown
694 lines
16 KiB
Markdown
--- 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 |