27 lines
743 B
Markdown
27 lines
743 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-5-chapter-02 -->
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# Interest of Money Tax
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## Definition
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A tax imposed on the revenue derived from lending money at interest, which
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cannot raise the rate of interest itself but must be borne by the lender
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through reduced returns or passed on to borrowers through higher borrowing costs.
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## Source Chapter
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Book V, Chapter 2
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## Context
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Smith argues that the interest of money is a less proper subject for direct
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taxation than land rent because the amount of capital is difficult to
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ascertain and can be easily moved between countries, making such taxation
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inefficient and potentially harmful.
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## Economic Domain
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General Theory
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---
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