markitect-main/examples/infospace-with-history/output/entities/interest-of-money-tax.md

Interest of Money Tax

Definition

A tax imposed on the revenue derived from lending money at interest, which cannot raise the rate of interest itself but must be borne by the lender through reduced returns or passed on to borrowers through higher borrowing costs.

Source Chapter

Book V, Chapter 2

Context

Smith argues that the interest of money is a less proper subject for direct taxation than land rent because the amount of capital is difficult to ascertain and can be easily moved between countries, making such taxation inefficient and potentially harmful.

Economic Domain

General Theory

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