Question by Forget War Buy More: To which economic philosopher do many economists trace the origin of the modern progressive tax system?
I’ll even give you a passage from one of his early works as a hint:
“The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. A tax upon house-rents, therefore, would in general fall heaviest upon the rich; and in this sort of inequality there would not, perhaps, be anything very unreasonable. It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.”
Best answer:
Answer by Paula
You refer to Adam Smith.
See http://en.wikipedia.org/wiki/Adam_Smith
In part:
The Wealth of Nations expounds that the free market, while appearing chaotic and unrestrained, is actually guided to produce the right amount and variety of goods by a so-called “invisible hand”…. Smith believed that when an individual pursues his self-interest, he indirectly promotes the good of society: “by pursuing his own interest, [the individual] frequently promotes that of the society more effectually than when he intends to promote it.” Self-interested competition in the free market, he argued, would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services.
Know better? Leave your own answer in the comments!
