When examining the different forms of taxation, Smith adheres to four maxims which a good tax should conform to:
1. "The subject 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."
2. "The tax each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, and the quantity to be paid, ought all to be clear and plain to the contributor, and to ever other person."
3. "Every tax ought to be levied at the time, or in the manner in which it is most likely to be convenient for the contributor to pay it."
4. "Every tax ought to be so contrived as both to take out and to keep out of the pockets of the people as little as possible, over and above what it brings into the public treasury of the State."
http://www.progress.org/banneker/adam.htmlThe subject of the State should support in proportion to their respective abilities...
Sounds almost Socialist -- at least to Tea baggers it probably does.
But it is Adam Smith the Father of Capitalism.
He also believed in two forms of taxation,
1. A tax on ground-rents (the annual value of holding a piece of land)
2. A tax on luxury consumables
Taxes on salt, soap, etc., he harshly criticized as inequitably taking from the poorest elements of society. Taxes on luxuries, which were to include tobacco, he considered excellent in that no one is obliged to contribute to the tax: "Taxes upon luxuries have no tendency to raise the price of any other commodities except that of the commodities taxed ... Taxes upon luxuries are finally paid by the consumers of the commodities taxed, without any retribution."
So...Luxury taxes are a good thing.
But if we adhered to that above logic on luxury taxes I guess that would be similar to Hitler going through Poland, or some other analogy put forth by the wealthy
Whether you like Adam Smith or Not, It's a great way to mess with Tea Baggers