728 B
728 B
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