Equity in Taxation

SORA Fairtax is our implementation of Adam Smith's taxation system described in The Wealth of Nations, designed to make governments wealthy while being easy on the people

Integrated in SORA City

A taxation system from the Scottish Enlightenment

All nations have endeavoured, to the best of their judgment, to render their taxes as equal, certain, convenient as possible. Historical taxes will show that these endeavours were not equally successful.

Simple Wealth of Nations Book 5: Chapter 2

Ends tax evasion and leakage

SORA Fairtax or shared direct taxation is a double entry tax system where each tax is split between the buyer and the seller. The seller's payments for each transaction must match the buyers'.

Commercial taxation: Single-entry

Tax burden is borne by the seller who must pay on behalf of the buyer. Receipts must be analyzed to determine correct tax payment

SORA Fairtax: Double-entry

Tax burden is split evenly between buyer and seller. Tax payments are checked by comparing the tax payment of the buyer and seller in a sample

Where the riches are engrossed by a few, these must contribute very largely to the supplying of the public necessities. But when the riches are dispersed among multitudes, the burden feels light on every shoulder.

Three tax classes

SORA Fairtax categorizes taxes according to three classes: Tax on fixed capital, called rent taxes , tax on circulating capital, called profit taxes , and Tax on personal capital, called wage taxes . The rent taxes counteract the natural idleness from wages taxes, the profit taxes counteract the natural rent-seeking behavior from rent taxes, while the wage taxes counteract the natural oligarchy tendency from profit taxes.

SORA Social Fairtax refers to the double-entry system on the three tax classes where the interest of the buyers, renters, and employees checks the interest of the sellers, landlords, and employers, and the public interest of the government checks the combined interest of the two parties, who then check the government through elections. The simplicity of the system empowers everyone to check each other!

Taxes on fixed capital
(Rent taxes)

  • Taxes on immovables, estate taxes
  • Taxes on rent
  • Taxes on corporate income, dividends, Percentage tax

Taxes on circulating capital
(Profit taxes)

  • Sales Taxes, Value added taxes, Capital gains taxes
  • Excise taxes, Customs duties, Tarrifs
  • Inheritance taxes
  • Documentary Stamp tax

Taxes on Wages
(Wage Taxes)

  • Payroll tax

The ancient Tenths and Fifteenths were taxes so usual in England. They were taxes of the same kind as the taille.

Simple Wealth of Nations, Book 3