Adam Smith on taxes, inequality of riches, regulating banks

adam smith on taxes“The subjects of every state ought to contribute toward the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state ….[As Henry Home (Lord Kames) has written, a goal of taxation should be to] ‘remedy inequality of riches as much as possible, by relieving the poor and burdening the rich.'” — Adam Smith

“Though the principles of the banking trade may appear somewhat abstruse, the practice is capable of being reduced to strict rules. To depart upon any occasion from those rules, in consequence of some flattering speculation of extraordinary gain, is almost always extremely dangerous and frequently fatal to the banking company which attempts it.” — Adam Smith

Public Banking

[From Public Banking Institute – Banking in the Public Interest.]

Public Banks are …
  • Viable solutions to the present economic crises in US states.
  • Counter-cyclical, meaning they are capable of reducing the negative impact of recessions, because they can make money available for local governments and businesses precisely when private banks decrease lending.
  • Potentially available to any-sized government or community able to meet the requirements for setting up a bank.
  • Owned by the people of a state or community.
  • Economically sustainable, because they operate transparently according to applicable banking regulations
  • Able to offset pressures for tax increases with returned credit income to the community.
  • Ready sources of affordable credit for local governments, eliminating the need for large “rainy day” funds.
  • Required to promote the public interest, as defined in their charters.
  • Constitutional, as ruled by the U.S. Supreme Court

Public Banking — it already works in the United States and is catching on!  20 States are considering some form of state banking legislation.

What’s Happening in your State?

Find out by clicking on the map or here.

Are you interested in starting a county-owned bank? Visit our new county bank webpage here.

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