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# Ground Rent Tax

## Definition

A tax specifically levied on the rent of land upon which buildings stand,
which falls entirely upon the owner of the ground as a monopolist who exacts
the maximum rent possible for the use of his land.

## Source Chapter

Book V, Chapter 2

## Context

Smith argues that ground rents are particularly suitable for taxation because
they arise from the good government of the sovereign rather than from any
effort by the landowner, and such a tax would not discourage industry or
improvement.

## Economic Domain

General Theory

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