Adam Smith never proposed progressive taxation on income.

[Schema Thing]

That was a reply to me on another forum.

Since I know Adam Smith did indeed favor progressive taxation, I figure the dude is playing around with the words "on income" (I know how this guy argues - he's sleazy).


I admit I haven't really read Adam Smith. Is this guy totally full of shit, or did Adam Smith propose tax on something separate and distinct from "income"?

Anyone have a good retort for me to use?

[handmade34]

1. he said...

“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.”


he is certaining rolling in his grave

[aquart]

6. "Under the protection of the state."

The rich do need to be reminded of this.

[lumberjack_jeff]

2. From Wiki

"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."<108>
Moreover, in this passage Smith goes on to specify progressive, not flat, taxation:
"The rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion"<109>
Smith even specifically named taxes that he thought should be required by the state among them luxury goods taxes and tax on rent. He believed that tax laws should be as transparent as possible and that each individual should pay a "certain amount, and not arbitrary," in addition to paying this tax at the time "most likely to be convenient for the contributor to pay it".<108> Smith goes on to state that:
"Every tax, however, is, to the person who pays it, a badge, not of slavery, but of liberty."[110

[JHB]

3. His "Canon of equality or ability"

(1) Cannon of equality or ability, (2) Cannon of certainty, (3) Cannon of convenience, and (4) Cannon of economy.

(1) Canon of equality or ability: Canon of equality, or ability is considered j to be a very important canon of taxation. By equality we do not mean that people should pay equal amount by way of taxes to the government. By equality is meant equality of sacrifice, that is people should pay taxes in proportion to their incomes. This principle points to progressive taxation. It states that the rate or percentage of taxation should increase with the increase in income and decrease with the decrease in income. In the words of Adam Smith:

"The subject of every state ought to contribute towards the support of the government as early 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".

(2) Canon of certainty: The Canon of certainty implies that there should be certainty with regard to the amount which taxpayer is called upon to pay during the financial year. If the taxpayer is definite and certain about the amount of the tax and its time of payment, he can adjust his income to his expenditure.

more at the link
http://economicsconcepts.com/canons_of_taxation.htm

[Lost-in-FL]

7. This is a great link. Thanks! nt

[PoliticAverse]

4. See:

http://www.progress.org/banneker/adam.html

He opposed taxes on wages.

[Lost-in-FL]

5. Without taxes... How else could the government pay for "public works, education...

that would benefit both employer and employee" etc?

This link quotes directly from The Wealth Of Nations, Adams Smith's masterpiece.

http://www.progress.org/banneker/adam.html

[provis99]

8. Thomas Jefferson was in favor of progressive taxation, too.

"Another means of silently lessening the inequality of property is
to exempt all from taxation below a certain point, and to tax the
higher portions of property in geometrical progression as they
rise." --Thomas Jefferson to James Madison, 1785.