688 B
688 B
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