The independent., 1903-05-14
HOW THR SINGLE TAX MAY BE
ADOPTED

WTItLeu lOE I1euIy OcOl6S IuitioA
of The independently
We sometimes hear that in order
to support the federal, state and 10
cal government by a tax on land val
ues it will be necessary to create en-
tirely new systems of assessment and
taxation, and although the question
has often been answered it is still
asked whether a tax on land values
will be sufficient for all governmental
purposes.
The census reports showing the
wealth and taxation of the United
States for 1900 have not been pub
lished, and we must therefore use
the fignres for 1890 However. the
proportion between land values and
expenses of government must be sub
stantially the same now as then. SO
that the figures for 1890 will serve.
By the census of 1890 the total an
nual expenses of government, ma
tional, state and local, amounted to
$877 ,054, ,820. The total annual ground
rent was in excess of $1,59l, 1913 600.
OF this total expense of government
about $211, 10000 was then paid by
a tax on land values 1t is evident,
therefore, that even if allowance is
made for error the annual ground
rentals of the country are ample for
every governmental need.
In every state large part of pres
ent revenue is raised by tax on land
values, and all the machinery neces-
sary for assessment and collection is
found in existing law.
The problem is to raise revenue for
federal government, state, county and
local government, and it is believed
that the most practicable plan is to
begin with local government. To this
end local option in taxation is desir-
able. By this is meant a grant OF
power by state legislatures to the
counties or towns to exempt from
taxation personal property and i'm
provements on land. The constitu-
tions of eight states contain no pro-
vision to prevent such grant OF pow
er, and in seventeen states there is
no constitutional barrier to the ex-
emption of any class Of property by
the legislature itself.
If local option is granted in any
state, revenue for state purposes may
properly be obtained by tax upon
counties Cncluding all smaller diyi-
sions) in proportion to the total local
revenues. This removes any objec-
ton to the exemption of property
| from taxation in one part of the state
when there is no such exemption in
other parts of the state. This plah
of appoftionment of the state tax in
proportion to local revenue does away
with the present inequalities due to
varying ratios of assessment, ana
more nearly apportions the burden in
accordance with land values. Rev.
enues are always larger in cities than
in rural districts in proportion to the
assessed values. of all property and
land values are always higher in cit
| les in proportion to the total as
sessed values of all property. When
all revenue is derived from a tax on
land values, apportionment on tha
| basis of revenue will be substantially
| the same as apportionment on the
| basis of annual ground rent.
The federal constitution provides
| that direct taxes shall be apportioneJ
| in accordance with population. A di-
rect tax on land values for federal
purposes, therefore, requires an
amendment to the federal constitu
tion, but the federal government may
be supported by tax on the income
| of state and local governing bodies
without changing the federal consti-
| tuition. For reasons already given
this apportionment of federal revenue
will be fair to the poor states and i'm
pose the heaviest burden where it
should be placed-on states rich in
land values.
The burden Of supporting all
branches of government may be ap.
| portioned as follows: Revenue foc
the federal government is to be ap-
portioned to the states in proportion
to the local revenue of each state and
of the governing bodies within it.Rev-
| enue for each state and the sum the
state must pay to the federal govern
ment will be apportioned to the coun-
ties OF towns in proportion to their
local revenue. The counties and
towns will raise all revenue by tax
on land values only.
The changes in existing law which
must be made are almost solely lii
| fho pot11ro of Wa d-r