Thread by @adamsmithworks

Today we will finally conclude #AdamSmith's thoughts on consumption taxes in #WealthOfNations.
You may be inclined not to believe us at this point, and we, the SmithTweeters, couldn't exactly blame you. But it's true! (V.ii.k.) #WealthOfTweets #SmithTweets

In fact, today will conclude all of Smith's thoughts on taxes, which we began discussing long ago, in days of yore. (V.ii.) #WealthOfTweets #SmithTweets

It's been so long since we started this journey that Smith takes a paragraph to remind us that any tax meant to raise money from the poor should be on their luxuries and not their necessities. (V.ii.k.44) #WealthOfTweets

#AdamSmith thinks that many different taxes related to the production of alcoholic beverages should be replaced with a higher tax on malt.
He shows his work. With equations and everything. (V.ii.k.45–55) #WealthOfTweets #SmithTweets

Smith's most upset that alcohol taxes fall disproportionately on the poor. Rich estates brew their own beer and are exempt.
Without that exemption (Smith says end it!), we might have avoided unjust taxation AND a malt tax rant. (V.ii.l.45,55) #WealthOfTweets #SmithTweets

Smith thinks luxury taxes should be set up so that they can be "altogether voluntary". They can be avoided by people who really don't want to pay them, but will be paid by most people because they're not too onerous. (V.ii.k.58) #WealthOfTweets #SmithTweets

Consumption taxes on luxuries are in line with three maxims of taxation (equality, certainty, convenience), but they "offend in every respect" against the maxim that says taxation shouldn't take more from the people than it needs to. (V.ii.k.60) #WealthOfTweets #SmithTweets

These taxes are expensive. They:
1) Need a lot of customs officials,
2) Obstruct and discourage certain branches of industry,
3) Bring ruin to smugglers, who could be good people, and
4) Require lots of visits from tax-gatherers. (V.ii.k.61–65) #WealthOfTweets #SmithTweets

Britain could be worse. (V.ii.k.66–68) #WealthOfTweets #SmithTweets

France *is* worse. (V.ii.k.69–78) #WealthOfTweets #SmithTweets

Actually, we'll spend a little time on "tax farming" in France, because it's one of those things that we don't know how it could POSSIBLY go wrong in a few years for France. #FranceIsWorse #WhatCouldGoWrong (V.ii.k.73–75) #WealthOfTweets #SmithTweets

Tax farming was the practice of selling off the rights to tax a certain geographic area.

It was bad. #FranceIsWorse #WhatCouldGoWrong (V.ii.k.73–75) #WealthOfTweets #SmithTweets

Tax farming created incentives for more onerous tax laws and stricter enforcement against the common people of France by making both tools for private enrichment in addition to public revenue. #FranceIsWorse #WhatCouldGoWrong (V.ii.k.73–75) #WealthOfTweets #SmithTweets

"Even a bad sovereign feels more compassion for his people than can ever be expected from the farmers of his revenue." #SmithSnark
But that didn't motivate the Bourbons to stop it, apparently. #WhatCouldGoWrong (V.ii.k.73–75) #WealthOfTweets #SmithTweets

Tax farmers were also monopolists. #FranceIsWorse #WhatCouldGoWrong (V.ii.k.73–75) #WealthOfTweets #SmithTweets

Smith suggests that France might want to amend its tax policy so as not to vex the inferior ranks of people. #GoodAdvice (V.ii.k.77) #WealthOfTweets #SmithTweets

The oppressive, complicated, and cruel French tax system also raises far less than it should given France's population and resources.
Smith doesn't think there's much to be said for it at all.
We, the SmithTweeters, are inclined to agree. (V.ii.k.78) #WealthOfTweets #SmithTweets

Britain could be worse. (V.ii.k.79) #WealthOfTweets #SmithTweets

That's all the advice Smith has about raising revenue to support the proper duties of government. But sometimes, it's still not enough. That's why we have the next chapter, on public debt! See you tomorrow! (V.iii.) #WealthOfTweets #SmithTweets