Chapter 8 On Taxes



“Taxes are a portion of the produce of the land and labour of a country, placed at the disposal of the government; and are always ultimately paid, either from the capital, or from the revenue of the country.”

From this passage we can see that any steps that one country may take in order to impose its tax regime on its  citizens who reside in and earn their wealth in another country is not a tax that is being levied on its citizens but is in fact a tax that is being levied on the economic productivity of their country of residence.

In other words what the “Savings” clause says about the U.S. is that it does not understand economics at all.