El Paso herald. (El Paso, Tex.) 1901-1931, 1910-07-18
By
Frederic
J. HaSk1n

who are the principal landowners over
two hundred years ago when they eX-
changed to king William this money
revenue, to be paid by their tenants
in lieu of all service. tenures and ieVleS
of soldiers due TO the Crown from the
Peers under the remaining rules of the
feudal system.
SocfaIfsttc Features Prominent.
So much has been said about the ter
rfble soclalistic features OF this land
tax. IT has heen so often denounced and
so seldom explained. that it is worth
while 10 examine into its provisions in
order to find out exactly what the
British landlords are crying about.
The new scheme of taxation is COM
pIicated affair which at first can pro-
duce but little revenue. but 1T is re-
garded as an entering wedge The
principal proposals are threefold. the
increment duty, the reversion duty and
the unGeveloped land duty
The first provides that, in the future,
the increase in the value of land due
to the efforts of society as a whole,
and in nOwise to the industry or ingen-
uity of the owner, shall be regarded
as unearned increment and that 20 per-
cent or one-fifth, of such increase shall
be paid to the treasury This tax is TO
be paid only when the land is sold, or
when it changes hands by reason of
the death OF the owner In case IL Is
owned by a corporation not liable to
death duties, then the tax is to be paid
in 1914 and each seventh year there
after. The phrase "unearned incre-
ment" may startle some conservative
Americans who are sensitive to the in
fluence Of bugabOOS, but II must be
remembered that in American states,
every annual or biennial assessment
takes into account for purposes Of an
nual taxation not only the unearned
increment but also the original value Of
the land
EngIand's Tax System Peculiar.
If a farm in Missouri is assessed at
! value Of $4,000. and it's value is
| enhanced $4,000 by improvements placed
upon it by the owner and is still
I further increased by $1,000 because of
! the building Of q new railroad, the
state of Missouri would collect taxes
on the total value, including improve
ments made at the expense of the
| owner, as well as the unearned incre-
ment resulting from the advent Of
| the railroad In England under the
Lloyd-George Budget taxation. no tax
would be levied upon the $4,000 original
/ value, nor upon the improvements, the
! only thing would be that when the
| land was sold, five years or so years
/ hence, the government would take 20
/ percent or the $GOOO unearneQ mere
I ment, after allowing an exception of
| the first 10 percent increase to the
/ owner tax free In a country where
! land rarely is sold, IL is difficult to see
| how this tax would work a hardship.
As a matter of fact the Missouri
| farm would entirely escape taxation
under the LIoyd-George system, for all
purely agricultural land, all land worth
/ less than $3.50 an acre, all property
occupied by the owner as a home, is
! excepted from taxation absolutely In
/ other words. the tax would be levied
/ only upon the landlord owners Of rent
ed property of high value used for
| other than agricultural purposes TO
which the community has contributed
( generously by increasing its value, and
| from which under the old system, no
/ taxes could be collected. So much for
| the socialistic increment duty.
The second feature. the revision
I duty, is a tax of 10 percent upon the
value of the benefit accruing TO
land owners, from Improvements made
! by the lessees, at the expiration
of leases of longer than twenty
| one years duration. In England where
nearly all improvements are made upon
/ leased land. it is not unusual for a
landlord, by the expiration of the
lease, TO become possessed of buildings
and other improvements worth thous-
| ands and hundreds Of thousands and
even millions of dollars, for which he