690 B
690 B
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