The Lynden tribune. [volume] (Lynden, Wash.) 1908-current, 1911-11-02
THE PROBLEM OF TAXATION
Paper Read at the Farmers Congress recently held at
York, Nebraska.-By Judge Arthur B. Wray

taxation professor Seligman) has
said:
.'If we sum up all these inherent
defects, it will be no exaggeration IL
say that the general property tax II
the United States is a dismal failure
8. If the personal property taA
has failed, the inquiry at once pre-
sents itself: What shall be substitute
ed in its place?
Let us note what has already been
accomplished. A new system of tax
alton is gaining ground in Australia
New Zealand, Japan and Germany.
The British Budget and the reforms
advocated by Lloyd-George are part
of world movement.
In Canada tendency exists to re-
auire real estate to bear the burden
of taxation. The city of Vancouver,
which has municipal option so far as
taxation is concerned, abandoned the
personal property tax and the tax on
improvements and now looks to real
estate for revenue. AS a result, Van
couver has rapidly increased in pop
ulation. The city's record for new
buildings shows an increase of 81 per
cent over last year, while it's bank
clearngs make a better showing than
the city of Washington. Thousands
of people have moved over from
Seattle and Portland, and Washing
ton and Oregon are on the defensive.
Vancouver has made the most re-
markable growth of any city in the
world. In spite of the tax on real
estate. real property has increased in
value, and there is no disposition TO
return to the old System.
Tax reform is making rapid progres
elsewhere in Canada. Alberta mas
discarded the old system. When On
tario adopts the new plan, Michigan
and New York will be concerned, and
like Oregon and Washington, will De
compelled to act in self defense.
Tax reform in the United States,
however, will not come in day; but
here a little, there "a little, step by
sep. our people will advance from
the old system to the new. The OBJ
lection urged to the substitution OF
the single tax for the personal prop
erty tax is that real estate Will bel
unduly burdened. Single takers con-
tend however, that the increased tax
will fall mostly upon unimproved real
estate. and that competition for in
yestments will keep down interest
rates. Their contention is that land
should bear the burden of taxation.
They tell us that the Dutch purchas-
ed Manhattan island from the lndiansl
for S24. Today the same land, ex-
elusive of buildings, is assessed ut
three thousand millions of dollars.
What caused the increase in value.
from $24 to three thousand millions?
Is it not the fact that people settled
there, and the great city of New
York was located there?
In the early days man purchased
& vacant lot in New York city for 4
mere pittance. He did not improve
If or sell it, Imperial buildings sprang
- ID hot
is in the heart of might city and
j. worth many millions. What gave
il value? 1t was not the labor of
the owner. He did nothing. Tne
labor and industry and capital OF
other men gave it value. The value
attached to that vacant lot is a pub
lie value. As the community gave it
value. the community should tax the
value it has given and take it into
the public treasury for the Denefit OF
all.
Thus the single takers argue tAat
society having given value TO real
estate, real property should bear the
expense of society and become the
sole source of revenue. They declare
that Almighty God created the land
for all men just as He made air and
sunlight for all men; that there are
individuals in this country who would
monopolize the air if they could, who
would put a meter on every mans S
nose and compel him to pay for the
air he breathes; that we would allow
no man to monopolze the air, sun
light or water, but We do permit 4
certain number to ponopolize the
other element of human existence
the land. They tell us that in Eng
land a few men own the soil; that
in this new country only one-half of
cur farmers own their farms, and
about one-fourth of the people in
our large cities own their homes.
They point to the fact that while
four and five thousand human beings
/ In, c;, ln lye