The Simplified Wealth of Nations of Adam Smith, Book 5, Chapter 2, Part 1 & 2 Appendix: Capital Taxes

Chapter 2i, Part 1 and 2 Appendix: Capital Taxes

Apendix To Articles 1 And 2:  Taxes On The Capital Value of Land, Houses, and Stock

113 While property remains with the same person, its taxes never aim to reduce or take away its capital value. 114 The transference of immovable property are public and notorious transactions.
  1. By requiring that the deed containing the obligation to repay should be written on paper which paid a stamp-duty, otherwise be invalid
  2. By requiring that the deed should be recorded in a public or secret register with certain duties upon such registration, otherwise be invalid.
115 The Vicesima Hereditatum was the 20th penny of inheritances imposed by Augustus on the ancient Romans. 116 The Dutch tax on successions is of the same kind. 117 The casualties of the feudal law were taxes on the transference of land from the dead to the living and from the living to the living. 118 The heir of every immediate vassal of the crown paid a duty worth a year's rent upon receiving the estate's investiture. 119 By the feudal law, the vassal could not alienate without the consent of his superior. 120 Such transactions may be taxed indirectly through stamp-duties or registration duties. 121 In Great Britain, the stamp-duties vary according to the nature of the deed and not so much according to the value of the property transferred. 122 In Holland, some stamp-duties and registration duties are proportioned to the value of the property transferred. 123 In France, there are both stamp-duties and registration duties. 124 Taxation by stamp-duties and registration duties are a very modern invention. 125 Taxes on the transference of property from the dead to the living fall finally and immediately on the person to whom the property is transferred. 126 All taxes on property transfers diminish the funds for maintaining productive labour. 127 Such taxes are still unequal, even when they are proportional to the value of the property transferred, 128 In France, stamp duties are not much complained of. 129 The registration of mortgages and all rights on immovable property gives great security to creditors and purchasers. 130 English stamp-duties on cards and dice, newspapers, periodical pamphlets, etc. are consumption taxes.
Words: 2004

Next: Chapter 2j: Wage Taxes