The advocate., 1892-05-04


capital. Whenever business fails to pro-
vide the funds to cover the other items,
he must gradually trench upon his capl-
tai until he must borrow money or go
into bankruptcy. II he is doing business
upon borrowed capital he can only lose
his net profit and cut down his living ex-
penses-the interest upon his capital he
must pay.
Now, what have we determined? First,
merchants gross profits represent wages
for their labor, including feed, cloth
log, fuel and shelter. Second, merchants
net profits represent any wages they
may receive In addition to, or besides
board, clOthe sand lodging. Third, be-
fore merchants can obtain their food and
clothing, without using their business
capital for that purpose, they must have
succeeded in Shifting" their rent lin
cluding taxes upon land and building),
and all taxes levied upon their goods and
wares, onto their customers, the general
public. FOutb, if they pay any taxes
upon residence owned and occupied by
them, or rent (which includes taxes), for
a rented residence, they must collect it
from their customers, or impair their
business capital. Thus we fnd First,
under the present system rent, including
taxes upon land and building, so far as
Is concerned valuable land, occupied for
income producing businesses, is an indi-
rect tax upon consumption; economic
rent" less the taxes on land, going to the
enrichment of land owners, as such,
while rent upon buildings, less the tax,
goes to enrich the owners of buildings,
the entire building rent, including tares
being also an indirect tax upon con-
sumption; land owners, building owners
and all merchants, business exploiters
and middle men simply paying their
per capita proportion as consumers. The
tariff upon imported goods Is used to pay
the expenses of the general government,
while the increased price in goods, made
possible by the tariff Is divided between
the items met profit" and "lnterest," the
money lender getting the lions share.
Thus we find, so far, that no direct tax Is
paid by any except clerks, mechanics,
lRborers and wage workers generally,
(Who must, out of their wages, pay the
taxes upon residence property occupied
by them) and those who pay taxes upon
personal property held for use and not
for profit.
Now what would the single tax do?
would nGtiOnalizs land and
make the peoples government the uni
Versal landlord-single takers to the con-
trsry, Notwithstanding. Second-Itwould
eliminate from the problem the factors
called tariff, internal revenue tax and di
rect taxes of all description, leaving only
economic rent" which would not be re-
duced, because the privilege of occupy
Ing and using land would be worth as
much under the single tax as under the
present system. Individuals would then
simply hold (not oa1n) land by virtue of
the ownership of the improvements there
on, and they must pay as tax as much
annual rent as anyone else would pay,
whether they occupied such land or not.
Building rent would remain the same as
now, less the taxes now paid upon build
Ings. This would decrease the cost of
goods and consequently reduce the re-
tail price Of such goods, by just the
amount of all direct and indirect taxes
now levied upon goods, merchandise,
wares and commodities. But, included
IN the then price Of goods would yet be
economic rent" (the single tax) interest
upon cost of improvements and upon