Many people make dubious claims about Adam Smith’s beliefs. The usual pattern is to claim that the economist was not really a wicked conservative (true) but a modern progressive (false).
Three common claims are that Smith favored progressive taxation, public education, and government regulation of monopoly. Two are entirely, one partly, false.
PROGRESSIVE TAXATION
Smith’s first maxim of taxation, from Wealth of Nations, is that the “subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”
Taxation in proportion to revenue is not progressive taxation. It is proportional taxation—in modern terminology, a flat tax.
Not only did Smith not endorse a progressive income tax, he did not endorse any sort of income tax. “Capitation taxes,” he warned, “if it is attempted to proportion them to the fortune or revenue of each contributor, become altogether arbitrary. The state of a man’s fortune varies from day to day, and without an inquisition more intolerable than any tax, and renewed at least once every year, can only be guessed at. His assessment, therefore, must in most cases depend upon the good or bad humour of his assessors, and must, therefore, be altogether arbitrary and uncertain.”
Smith did not want a tax on income. He wanted a system of taxation whose burden is proportional to income. Unlike most modern commentators, he realizes that determining who bears the cost of a tax is not as simple as seeing who hands over the money.
Diese Geschichte stammt aus der July 2023-Ausgabe von Reason magazine.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der July 2023-Ausgabe von Reason magazine.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
50 Years of D&D: You Can't Copyright Fun
This year marks the 50th anniversary of the original edition of Dungeons & Dragons (D&D), the granddaddy of tabletop role-playing games and one of the urtexts of nerd culture.
The Alzheimer's Test You're Not Allowed To Have
MILLIONS FACE THE shadow of Alzheimer’s, a disease that steals memories and devastates lives.
An Early Test for Alzheimer's
SHOULD YOU BE allowed to take a blood test that could tell you if you’re already at risk of Alzheimer’s disease? Last year, Quest Diagnostics began offering a consumer-initiated blood test for $399 (not covered by insurance) that detects the buildup of proteins associated with the development of Alzheimer’s in customers’ plasma.
Caging Lab-Grown Meat
LAB-GROWN MEAT IS a scientific marvel. We’ve managed, through pure human ingenuity, to create something that looks like meat, cooks like meat, tastes pretty much like meat, and comes from animal cells—yet doesn’t require the slaughter of a single living animal.
The 'Migrant Crime' Wave, Debunked
“THE UNITED STATES is being overrun by the Biden migrant crime,” said former President Donald Trump during a visit to the U.S.-Mexico border in February. “It’s a new form of vicious violation to our country.”
Don't Co-Parent With Congress
I’M ALWAYS PUZZLED when I hear other parents say they’re worried about the effects social media might be having on their children.
Is Chinese Garlic a Threat to National Security?
IS A STAPLE ingredient in your kitchen secretly undermining American sovereignty? Sen. Rick Scott (R–Fla.) seems to believe so.
Launch Approved? Not So Fast, Says Sluggish FAA
MOST AMERICANS ARE eager to see NASA astronauts return to the moon and push humanity’s boundaries with future exploration of Mars.
SpaceX Edges Closer to the Moon
ARTEMIS II IS a crewed moon flyby mission, the first in a series of missions meant to get American astronauts back to the moon and eventually to Mars.
Blaming Tech for Teen Troubles
Jonathan Haidt’s clever, insufficient case against smartphones