I was speaking once to a Dutch acquaintence, who told me that in his economics class at Uni, they were taught Smith was in favour of large State subsidies...!
No, he did not.
Quote me anything in WoN where he says this should happen.
He writes about where it does happen, but that's all; he describes the situation. That's all.
"It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue but something more than in that proportion."
Overall, his message is decidedly pro freedom and against top down economic planning and intervention. People are naturally self interested, and enabling them to voluntarily trade with others as they see fit enhances the life of each partner of the trade. Scale that up and society advances itself with an centralized arbiter to guide it.
As for taxes, the reason he felt that the rich should pay more is because they derive the most benefit from the existence of the state.
If my etiquette was at all inappropriate I apologize.