History of Economic Thought
| Type | Citation | Sources | Views | Words | Pages | Essay # |
|---|---|---|---|---|---|---|
| Term Paper | MLA | 8 | 32 | 2571 | 8 | 47524446 |
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In the mind of Scottish thinker, the government should step aside and let the market run itself based on economics principles, such as demand and offer and by the personal interests of all participants. But the role of the government is not to be completely eliminated and nor are so the taxes imposed. As such, Smith forwarded the idea of an income tax. 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. The expense of government to the individuals of a great nation is like the expense of management to the joint tenants of a great estate, who are all obliged to contribute in proportion to their respective interests in the estate. In the observation or neglect of this maxim consists what is called the equality or inequality of taxation. [9]
Other roles of the government as promoted by Adam Smith include the building of local and unprofitable sites, such as roads and bridges. Then, he also thought it would be advisable for the state authorities to
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