The Scottish economist, Adam Smith, wrote The Wealth of Nations in 1776. Which of thr following is the basis for Smith's four principles of sound taxation?
A. Those who earn the largest amount should pay all the taxes.
B. All taxes should come from the sale of various goods.
C. A flat tax distributes the tax burden fairly.
D. The tax burden should be spread fairly among the taxed.
My computer want let me pull that web site up do you have another solution to the question?
From the above site:
"Adam Smith is generally considered (certainly in the English speaking world) to be the father of modern political economy. In "The Wealth of Nations" (1776)[1] he set forth four maxims, or canons, of taxation, saying that "the evident justice and utility of (these) maxims have recommended them more or less to the attention of all nations.[2] The maxims were as follows:-
I. 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.
II. The tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person.
III. 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.
IV. Every tax ought to be 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."
I think the answer is D. does that make since to you.
Yes. D is right.
To determine which of the given options is the basis for Adam Smith's four principles of sound taxation, we need to refer to Adam Smith's book, The Wealth of Nations. To find this information, you can follow these steps:
1. Begin by searching for a reliable source that provides a summary or analysis of Adam Smith's book, The Wealth of Nations. You can use search engines like Google or online encyclopedias like Britannica.
2. Look for the chapter or section in the book that discusses taxation or principles of sound taxation. Smith's principles can be found in Book V, Chapter 2, titled "Of Taxes," in The Wealth of Nations.
3. Read the relevant section to understand Smith's viewpoint on taxation and the principles he proposes. Take note of the specific principles mentioned in the book.
4. Compare the principles listed in the book with the options provided in the question.
Based on the steps outlined above, we can determine that the correct answer is D. The tax burden should be spread fairly among the taxed. Adam Smith argues for progressive taxation, where individuals who earn more should contribute a higher share of taxes in proportion to their income. This principle reflects the idea of fairness and equitable distribution of the tax burden.