The best taxes are such as are levied upon consumptions…
“The best taxes are such as are levied upon consumptions, especially those of luxury; because such taxes are least felt by the people. They seem, in some measure, voluntary; since a man may choose how far he will use the commodity: They naturally produce sobriety and frugality, if judiciously imposed: And being confounded with the natural price of the commodity, they are scarcely perceived by the consumers. Their only disadvantage is that they are expensive in the levying.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Consumption taxes on luxury goods are less burdensome because people can choose how much to use them, making the tax feel voluntary and encouraging frugality, though they are costly to administer.
In simple terms: Luxury taxes feel optional and promote thrift, but are expensive to collect.
Key Takeaway
Use taxes that let consumers decide usage.
Themes
economics
taxation
consumer behavior
Mood
analytical
critical
Type
policy
economic
When to use this quote
- government budgeting
- policy design
- luxury market regulation
Key Concepts
public finance
behavioral economics
Questions to Reflect On
- How does consumer choice affect tax effectiveness?
- What alternatives reduce administrative expense?
A Different Perspective
Implementation cost can be high and may be evaded.