767 B
767 B
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