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 I truth
clarity and certainty
Clarity and certainty (one
of Adam Smith's 4 principles)
The application of a tax should be
clear and certain. This principle, considered very important by Smith,
has often been underestimated in modern tax systems (in which open and
impartial administration usually can be taken for granted). In nations
where the application of taxes is uncertain and arbitrary, however, the
public can have no confidence in the system. Even in the U.S., high rates
of inflation have sometimes created fears and uncertainties about rising
tax bills and the fairness of imposing taxes on inflated values. Such reactions
demonstrate the importance of clarity and certainty as principles of a
respected tax system. (FW)
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