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About this quote

What does it mean?
High taxes on necessities hurt the most, even in rich countries.
In plain terms
Taxes on basic goods are a curse.
What can you take from it?
Avoid taxing basic necessities heavily.

Where it applies

  • tax policy
  • public finance
  • social justice

Putting it to work

  • tax luxury instead
  • reduce basic good taxes

Questions to consider

  • Where should taxes fall instead?
  • Can you fund state needs without it?

Another view

Governments often need revenue from broad sources.

More from Adam Smith

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  3. As every individual, therefore, endeavours as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry tha…

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