26 lines
703 B
Markdown
26 lines
703 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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# Tax on Luxuries
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## Definition
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A tax imposed on goods that are not essential for life and whose consumption
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is optional, which falls directly on the consumers of these goods without
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affecting the wages of labour or the prices of other commodities.
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## Source Chapter
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Book V, Chapter 2
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## Context
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Smith considers taxes on luxuries to be more equitable than taxes on necessaries
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because they are paid voluntarily by those who choose to consume such goods,
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and they do not have the broader economic effects of raising wages or prices.
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## Economic Domain
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General Theory
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---
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