Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-01-04

intUt, VI INC lIonNtAloH VI W'hfNp' 'f''H
though the whole Of the annual rental |
value OF land, exclusive of improvements |
were taken for public revenues, neither
the wages OF labor nor the reward OF cap |
ital would be reduced one iota.
SPECULATIVE RENT.
So far from checking or interfering with
production, taxes TO the full extent Of the
annual rental value OF land would In
crease production, by destroying specula-
tive rent, the effects OF which are seen
not only in the enormously valuable land
withheld from use. but In the recurring
Industrial depressions which originate In
the speculative advance in land values
and then affect all production. Taxation
TO the extent Of the rental value OF land.
but not taxing the Improvement value,
would prevent the holding Of valuable land
out OF use. Thus settlement would be
closer and, consequently, labor and capt.
tai would be able 20 produce much more
with the same exertion. So far as pro-
duction is concerned, then. the best tax
is that which takes economic rent, the
rental value Of land. for public purposes.
Tax manufactures, and we interfere with
manufacturing; we fine manufactu az
though they were a nuisance; Ia I'M
provements, and we fine the improver; tax
commerce. and we fine those engaged in
It: tax capital, and we either drive 1t away
or cause its cOncealment But take Tor
public purposes the annual rental value
| Of land the unlmproved value, and indus
try will be stimulated. new. opportunities
will be opened to capital, and the produc-
ton Of wealth will be increased.
2. Ease OF collection.
| With the exception OF certain licenses
| and stamp duties the tax most easily ano
cheaply collected Is that on the annual
, rental value of land Land can neither
| be hidden or carried away; its value Is
! readily asCertalned. Under the revenue
| laws OF all our States part OF the reye-
nue. Is derived from taxes on land; the
machinery for that purpose already ex-
/ lists and could collect the whole revenue as
! easily and as cheaplv as the part Is now
collected; and the cost OF collecting taxes
on other things would be saved by sub
| shutting the land-value tax for all other
/ taxes. This saving would not only lessen
| the difference between what taxation now
/ costs and what 1t yields. but the public
would be benefited additionally in this
/ way:
A tax on land values does not add 70
| prices and is paid directly by the person
on whom II falls. But all other taxes
add TO prices, and in the course Of ex-
| change are shifted from seller TO buyer,
increasing as they go. Tax loans. and
| the lender makes the borrower pay the
tax. Tax the merchants stock and the
customers pay the tax with interest the
! consumer always pays the tax. Taxes on
| things produced increase the cost OF pro-
duction, and thus tend to check the supply.
But land is not a thing Of human produc-
ton, and taxes on the annual rental Valae
of land cannot increase the cost Of pro-
duction. nor check the supply. The land
value tax will compel the use Of land held
| IL 20 cv,gnt1p i've pIlFnOgpg. will increase
competition between landowners. viii re-
duce the price Of land, and thus increase
the power and efficiency of both labor
and capital,
g. Certainty of collection.
Certainty is an important element In
taxation, for, in proportion as the collec-
ton Of a tax depends on the diligence ana
faithfulness of collectors, and the puohc
spirit and honesty Of the public, so VIII
opportunities for tyranny and corruption
be opened on one side, and for evasions
and fraud on the other, And II there Is
q State in this Union where tyranny and
corruption, evasions, fraud, and perjury
are not common in connection with tax
alton, have not heard of 1t. wealthy
citizen of Chicago said recently;
"There is one day in the year when all
we businessmen commit perjury. 1t is
, the day when we declare our taxable
property"
Taxes that lack the element of certainty
subvert the morals of the community. A
custom-house oath is a by-word, assess
ors regularly swear TO assess property as
the state Constitution directs and as reg
ularly do nothing of the kind; men who
pride themselves on their personal and
, commercial honor brihe officials and make
false returns.
The tax on land values possess the ele-
| f,-tx~ fr. he fyh
1t may be collected 10 the last cent; ana
though the assessment Of land is now
often unequal, the assessment Of personal
property is far more unequal; and the IN
equalities IN the assessment OF land arise
largely from the fact that improvements
are generally assessed with the land and
also from the Generalization attached TO
our whole revenue scheme. Were all taxes
abolished except that on the annual
rental value Of land, exclusive Of improve
ment value. the scheme Of taxation would
be so simple and clear, and public atten'
{ ton would be 50 directed 70 1t, that the
valuation and taxation could and would
be made with the same certainty that a
real-estate dealer can now determine the
price for which a LOT can be sold
T. As 10 equality:
In our systems OF taxation we Yainly
20 attempt to carry out the idea that every
81 means. OF In proportion To his income
] | Waving the insuperabe difficulties in tn
5 way Of doing this, II would not be JUS. 4
70 we did do IT, John and James have equa
. | means or equal incomes, John has larg'
% family. James no one but himself 10 sup
, port. On these two men indirect taxes
y fall unequally for John cannot avoid tn
I taxes on the food. clothing, and othe
% comforts Of his family, while James pay
n taxes only on what he himself consumes
: But suppose the taxes levied directly
K each paying the same amount Here
10 again there is injustice, for the incom
\ of John is charged with the support of
say, seven or eight persons, while James
income is charged with the support OF bu
one person. Here is gross injustice, unles
. we are Malthusians TO the extent even o
| believing that the rearing Of children ]
= On injury TO the State. IL may be salt
Il that this difficulty cannot be got over
: | that the state is not responsible for John
? nv himself with family; tina
Nature herself brings human beings help
: less into the world, and devotes their sup
- por, upon the parents, providing In com
y pensation her own sweet and great re
. wards. Then let us turn to Nature, an
a read her law.
8 A HYPOTHETICAL CASE
d Nature gives to labor, and 70 labo
q alone. But for human eXertion, man woul
Il starve in a Garden OF Eden. Here, again
are John and James, or equSI incomes
y Johns derived from the exertion Of hi
n labor. James from tho lease Of a city LOT
Il a. which John has erected a factory