The San Francisco call., 1895-11-04
MAGU|RE ON SINGLE TAX,
Lecture On the Effects of LevieS
On the Distribution of
Wealth.
MECHANICS INSTITUTE SERIES
The Only Form of Taxation That
Does Not Check Production
and Impoverish Labor.

Congressman James G. Mcguire Iectured
Saturday evening in the library building
of the Mechanics Institute on the subject,
The Effects of Taxation on the Distribu-
ton of Wealth" The lecture, the fourth
in the regular institute series, was enthusi-
astically received by large audience. Mr..
Mcguire said:
No country has ever had either scientific
or satisfactory system OF taxation. We at
tempt to tax all kinds OF property upon the
theory that all property should contribute TO
the support OF the Government according to
the protection which it receives, wholly re-
gardless OF the effects OF such taxes on the
production and distribution of wealth. Iu-
deed IL seems TO have occurred 10 but few that
methods OF taxation may favorably or unfa-
vorably affect the fair distribution OF wealth.
Yet We do very generally observe and complain
that the great bulk OF the accumula ted wealth
OF the world is in the hands OF few people,
and those few, who are inordinately rich, are
essentially non-producerS.
Our system OF taxation falls heavily pro-
duction at every stage, and consequently
tends TO discourage and to check production.
Whatever checks production tends TO i'm
poverish producers, well as TO burden con-
sumers of wealth, and the great businesses
OF civilization are the production and distribu-
tion OF wealth, taxes which tend TO check pro-
/ duction are hindrance TO civilization, as well
interference with the means OF happiness
OF the people.
Our two general kinds OF taxes are direct
and indirect. The direct taxes are poll-taxes
!
other taxes are indirect
All taxes upon wealth in process of produc-
ton or exchange are merely advanced by the
owners and passed on, in the form of increased
prices, as burden finally upon the consumer
or user The men who thus advance the taxes
ara usually rich and the people think they are
taxing them according to their means, but the
! people who actually and finally pay such taxes
are usually poor and the taxes are altogether
out OF proportion to their means The same is
true OF taxes on improvements, OF tariff taxes,
and largely OF Income taxes.
Poli-iaXes are universally odious and fall
with undue severity upon the poor.
tax or land values imposes = burden upon
! industry does not tend 10 check the distribu-
! ton OF wealth; bears with proportionate
! equality on all and reaches all who are above
! the grade OF beggarS such tax carried to
/ the extent of absorbing the entire economic
| rental value of land would take from each
| citizen contribution to the public revenue
! exactly proportionate TO the advantages de-
! rived BY him from society.
! The rental value of land is produced by the
community and not OF the landlords. When
private parties eEe allowed 10 appropriate it, it
/ is called an unearned increment. II is the
I margin OF production which any given locality
VIII yield over all costs or production there.
Industry and commerce Will pay that margin.
| whether it be taken by the State or not. II the
! community which produces 1t will not take il,
! private individuals will Leaving il to private
| individuals has tremendous and very unjust
/ effect on the distribution OF wealth. 1t intro
| duces non-producing class called landlords
| 10 share in the distribution OF the wealth pro-
! duced by labor and capital
! The share taken by the landlord is mere
! toll levied upon industry, for the landlord, as
| such, contributes nothing TO production. lie
| reaps where he has not sown. Without pro-
| ducing he takes larger share OF the net re-
! suits OF production than do labor and capital
| mbined
| Wherever our multiplex system of taxation
prevails the landlords. who are not producers,
are the wealthy and the dominant class, while
the producers OF all wealth, as class, are al
ways poor.
This is contrary TO reason and to all OF our
/ M rTfaz1e ~ TrVgr ina
The people who produce all wealth from the
| natural, God-gtven sources, should possess all
wealth, while those who viii not produce
wealth should be governed by the scripturaI
| Injunction, ''n any would not work, neither
should he eat
! All wealth is produced by labor and capitsi.
Land is the passive factor which is God-given
But ell wealth is divided between Ia borers
! capitalists and landlords. Why landlords
| since they take no part nor share, either di-
rectly or indirectly, in production.
| There Is no reason for II. 1t has no founda-
! ton in justice. 1t results entirely from our
unwise system of taxation, which at the ex-
pense OF burdening and hampering the indus
tries OF the people, leaves 10 the landlords the
| margin of production which belongs to the
! people in general. 1t is produced by the peo-
| pie in general, and should be taken for their
| public use.
No other tax should be levied while this
common fund or product remains ulexhauSted
If il were taken for public uses, and all other
taxes abolished, then none but the producers
would share in the distribution OF wealth ex-
cept as matter OF voluntary charity.
Each producer would take for his individual
| use the true result OF his labor, and the com
! InuniIy would take the remainder for public
uses. That is to say, the community would
take that value attaching to the locality as an
indirect and indistinguishable result of the
Ia Dor and enterprise and virtues of all
There would then be no dominant, non-pro-
ducing class living parasites upon labor,
and no class would be excluded from the nat
ural opportunities that are stored UP in the
land.
As land monopoly, which prevents the suf
feriDg surplus labor from employing itself. is
due solely TO the effort OF SPECTATORS to secure
the unearned increment OF the land the taking
OF that increment for public uses would extir-
pate the monopoly and set labor free.
Would it be just to accomplish these highly
desirable ends by concentrating all taxes upon
land values?
Yes. The people have reserved that right as
against every foot of land that has ever gone
into private ownership. Wherever the general
happiness of the people shall seem TO require
il that right should be promptly and tully ex-
ercised, without any consideration Of the effect
which that course may have upon the gam
bling OF SPECTATORS.
The spectators invest subject to that right
of the people, and the investment is simply
wager on the probd BILE action OF the people in
this matter. They must take the gamblers
chances.
If the people continue the present system OF
taxation the land-g gamblers will win, but if the
single tax shall be adopted the land-gamblers
will lose and the people will win.