Durango semi-weekly herald., 1902-10-20
TO THE FARMERS.

The single tax advocates, all of
whom are solidly arrayed in behalf
of the tBucklin) miscalled Australia
sian" tax amendment. assert that tax
es on land can not be shifted or trans
ferred from the real owner of property
to another.
Assuming this to be undeniable,
suppose. for the purpose of illustra-
ton, the total value of all lands of
a particular county to be 500, 900, and
the ruling rate of interest to be 6
per cent.
The value of land. apart from the
speculative feature, is universally de-
termined by the amount it will an
nually yield. This annual income is
what might be called ground rent.
Ground rent is only another form of
interest upon certain capitalized val
ne. Thus, if particular piece OF
ground yields $500 per year, inclusive
of all expenses and the ruling rate
of interest is 6 per cent, the capital
lied value OF said land would neces-
sarily be 10000.
Supposing the value of all the land
because it yields to the owners an
average annual income of $4,000; that
a local government is established
which proposes to collect its sole
revenue from this source, and that
the cost of maintaining said govern
ment is $4,000 year
To raise this amount it is necessary
to levy a rate of 2 per cent upon the
total value of 100000
By so doing the income of the land
owners is diminished by one-third.
In other words. instead of having an
income of $4,000 per year, by contri-
Duting $4,000 for the support of the
government, their income is reduced
to $4,000 per year.
Inasmuch as the ruling rate of in
terest is per cent and the tax ac-
cording to the single takers and high
economic authorities, can not be
shifted. the value OF the lands of said
county would be reduced by one-third
of their original value.
To prove this, divide the income, or
s4 900, by the rate of interest, per
cent. which every school boy knows
is the proper way to determine the
principal, and the result will be
$685. &c.
The expense of local government
will not be diminished because of this
reduction in land value, and will con-
tinue to require $1,000 per year. But
the assessor finds that the principal
upon which he levied before has
shrunk from 100000 to S66,666, and
it becomes necessary for him to in
crease the rate of assessment from
per cent to 3 per cent in order that he
may raise the same needed revenue
The land owners are thus compell-
ed to contribute per cent out OF 8
per cent, or so per cent of their an
nuaual income. for the support OF
government.
This imposition will have the effect
of still further cutting the value OF
their land in half, and instead of hav-
ing a value of s66,666, it is now re-
duced to S33,333. To raise $1,000
per annum, the needed revenue, it
will be necessary to compute or fix
a rate of per cent upon the value OF
the land. This would be it's full rent
al value which would pass into the
Golfers OF the state, and the owners
would be despoiled of their property,
robbed of their constitutional right,
without remedy or redress.
Senator Bucklin and his adherents,
however much may disguise their
real purpose, intend to confiscate, or
in plain language. steal the lands
from thee people who own them to-
day, and make them the property of
the state.
This was the idea for which Henry
George stood and it is the purpose Of
the Bucklinites to carry it into prac-
tice.