Question

The Scottish economist, Adam Smith, wrote The Wealth of Nations in 1776. Which of the 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.

Answer 1

The choice that is the basis for Smith's four principles of sound taxation is the the tax burden should be spread fairly among the taxed! All other choices are incorrect of Adam Smith's views.