Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-09-14
SINGLE TAX EXPERIMENTS.

Many of the cities of western Canada have ex-
perimented with the single tax, and with results not
wholly satisfactory. We know of no city in which
the single tax has been applied in its entirety, but
notifications of it arc numerous. The general
property tax has been abandoned in whole or in
part. Structures on land have been exempted from
taxation. The shortage thus created has been made
up by levying increased taxes on land, without re-
gard to the Improvements which have been made
upon'it. Usually, however, partial personal prop
erty taxes have been retained, and the collection of
business and other special taxes is common.
In one respect the single tax method, in so far as
it has been applied, has worked out substantially as
its advocates predicted and intended. 1t has dis
couraged the ownership of unimproved city lots.
The man who buys unimproved city property and
holds it unimproved has in view one object. namely,
to benefit by increases in values to which he is con-
tributing nothing. With city lots bearing the tax
burdens which were formerly shared BY structural
improvements and personal property generally, the
ownership Of such lots became improbable. There
was a rush to unload. So much OUTLYING property
was thrown on the market that the price dropped
out of sight. In many cases lots could not be sold
tor enough to pay the taxes on them, and the muni-
cipalities themselves came into possession Of the
property. Several Of the Canadian cities have thus
become land poor.
Opponents of the single. tax blame that system
for the embarrassed condition in which the cities
find themselves. Advocates of the system maintain
that thc> trouble is not due to the method of tax
alton, but to speculative conditions which existed
before it was adopted, and which were directly due
to the old system of taxation.
Without attempting to decide as between these
opinions, it may be pointed out that conditions had
been created prior to the adoption of the new form
OF taxation which, sooner or later, were bound to
result in trouble for somebody. From Winnipeg
west practically every Canadian city was the scene
OF a speculative craze. City limits were extended
into the country for miles beyond the utmost pos
sibilities of growth within anytime that can be fore
seen. Lots in these vast areas were sold, not to
persons who expected to use them, but to those who
hoped to sell them to others at advanced prices.
Those who made quick turns realized profits, but as
these profits were often reinvested in property of
the same class, few realized any permanent advant-
age. The booms collapsed, and the unlucky owners
were left with property on their hands worth a few
dollars per acre which had cost them hundreds of
dollars per lot. Sometimes the liquidation of this
speculation had to be brought about. The wind and
water had to be squeezed out of the fictitious values
which had been created. Without any change in
the tax scheme the process might have been com
pared to evaporation. The change brought to bear
something in the nature of the hydraulic press. The
slower method would have caused less shock. The
more abrupt one has caused more violent strains and
stresses. 1t is not certain that the ultimate results
would have differed greatly. The wild speculation
was bound to result in loss to individuals and in en-
barrassment to municipalities.