There has been a proposed policy to increase indirect taxes, with some communists and socialists differing and agreeing on different aspects. The reaction of Adam Smith on the policy is that such taxes need to be levied in proportion to the revenue which is enjoyed under the protection of the state. He proposes that for the taxes to be stable, transparent and also be issued in ways that they do not harm or suppress the citizens. Smith, on the other hand, is of the opinion that the introduction of indirect taxes should only be levied when it is convenient. Hs also suggests that the taxes should be levied with the lowest possible waste, which modern economists refer to as the deadweight loss. On the directive of increasing indirect taxes, smith also states that some of the likely wastes in increasing the taxes should include costs to the taxpayer of economically and emotionally draining processes.
On these new policies, Smith-Lockean agrees with Adam Smith on the idea of increasing indirect tax rates in the country. He argues that there is a need for consent from the property owners and the majority of citizens getting these taxes before the policies are enacted. According to him, the government needs to have responsibility for legitimately levying taxes and should ensure that they are reasonable and that the majority of the citizens agree.
Keynesian economists believe that adding to profits and incomes during boom cycles through tax cuts tend to worsen the adverse effects of the business cycle. Marxists prefers direct taxes over indirect taxes since they have constantly preferred more progressive taxes in a nation. Their suggestion is inclined towards support for the ethical approaches since they prefer human beings to have better lives and reduce the burdens of taxes the government has on their people.