.
Forces Favoring Unjust Taxation: The
Clarions of the Battle Call |
| [Reprinted from The
Freeman, September, 1938] |
It's really the landowners who've done it to us. They are the ones who
have clamored, year after year, to get "tax relief for real estate."
They are the ones who have supported tobacco taxes and other state and
Federal excises, sales taxes, and all the host of burdens on the little
we earn by our weariness and sweat. They are the persona because of
whose dominating influence on the "liberal" legislators of
this "liberal" New Deal era, we have poorer food for our
children, poorer and, in the case of some of us, inadequately warm
clothing for them, and fewer of the toys and simple amusements which all
children everywhere long for.
There's been a lot of talk about "relieving" the poor home
owners of taxes. Probably plenty of these have joined in urging the new
taxes on those of us who own no homes but . pay rent to others so we can
have a place to live. But perhaps this is because they don't understand
what the new taxes are doing to them and us -- consumers.
We're tired of the pretended concern or legislators and of big
landowners for the poor home owner. We're tired of the crocodile tears
they shed about the home owner's tax burdens. For if they were sincere
and had any real comprehension of the problem, they would have to admit
that just to abolish taxes on houses and other improvements, while
raising the tax rate on the land or site, would give home owners all the
relief they can fairly demand; and that this relief would be still
greater if taxes were abolished on the goods which home owners -- and
the rest of us -- consume.
If the landowners who are constantly insisting on "tax relief for
land" by what they are pleased to call "broadening the tax
base," really wanted to aid the poorer home owners, they would not
propose, in place of taxation on the small amount of community-produced
site values these poorer home owners enjoy, taxes on food, clothing and
all or nearly all of the things that home owners buy. Most of all do the
landowner cohorts who keep insisting on low or no taxation of
community-produced site values, ignore the welfare of those of us who
have no homes but are striving our best to acquire them. For in order
that they may enjoy to the full the community-produced annual value of
land and sites, they want the revenues of government collected as
largely as possible from those who do not own any land. They want
increased taxes on the "ability" of the salaried store clerk
or the craftsman to earn a living by hard work, lowering the exemption
limit on workers' incomes so that larger revenues can he collected from
them. They want increased taxes on the expenditures of all workers, both
skilled and unskilled. Already, they have succeeded in getting many such
taxes levied. Thus, it becomes progressively harder for those of us who
have nothing but our labor, to buy or build homes, and many of us never
succeed -- and can never hope to succeed -- in accomplishing this end
which our professional well wishers so often say they desire to help us
accomplish.
Nor is this all. Untaxing site values makes it easier for speculative
holders of vacant lots to hold their lots out of use. Untaxing site
values so makes available land comparatively scares. The sale value of
land is made higher both because of speculative holding and because
un-taxing land leaves owners a larger net rent to capitalize into a high
sale value. And the greater salable value of land is certainly a further
obstacle in the way of those of us who are ambitious, to become home
owners.
Crocodile tears for home ownership! Much palaver among radicals about
the wicked "capitalists" and the shortcomings of "the
profit system"! Slogans about the importance of "broadening
the tax base," when the real thought is to untax community-produced
values enjoyed by landowners and to tax instead the necessities of the
workers! Slogans about making taxes "conform to the principle of
ability," when the thought really is to put more burden on the
middle-class white collar worker or skilled craftsman who is able to
earn by his labor and skill a trifle more than the unskilled worker, so
as to enable landowners to enjoy more of a value that is almost
altogether produced by the community! And with it all, this unending
talk about the "out-of-dateness" of the view that the
community should seek to take in taxation the situation value which it
and not individuals, produces! With it all, remarks intimating that to
take for public use location values which are most fabulous in our great
cities is an "agrarian" reform of no significance in our
largely urban civilization! With it all, too, vague suggestions about
the wonderful "liberalism" of politicians and "intellectuals"
who are willing to do anything for the workers except what is most
necessary for their welfare!
Should most of us have to pay a few of us for situation advantages
produced by all of us? Should most of us have to pay billions of dollars
a year merely for PERMISSION to work on and to live on the earth in
those locations which geological forces and community development have
made relatively productive and livable? These are questions that are
persistently ignored by the men who assume to be our political leaders.
Are they afraid of the political influence of a dominant landowning
class! These are questions that are ignored by conservatives. Are they
anxious that there be no discussion about them, no awakening of public
thought about them! These are questions that are ignored by the "highbrow"
magazines and the literary intelligentsia of "liberal"
proclivities who contribute to these magazines. Is it that discussion of
such questions readers to make the discussion pay, while it arouses a
more violent opposition from landowners than do vague criticisms of "the
profit motive," and that so such criticism butters no literary
parsnips!
Behold a question perhaps as fundamental as any about which human
beings can take sides, the question whether some of us should have to
pay others of us for permission to live on and work on the earth. And it
is THE SUBJECT OF THE GREAT SILENCE. Politicians will not discuss it, at
least not in this land of the free. Landowners must not be offended by
proposals that there be too much freedom, such as freedom to use land-
now held out of use by speculators who don't want to use it themselves,
or freedom to live on the earth without paying private individuals for
permission to do so. Conservatives, of course, are not interested. But
the radical .literary intelligentsia and their high-brow magazines also
ignore it. Are they, too, afraid of it? If not, why are they silent?
.Who, in a position of power or influence or prestige, will insist that
this toe the subject of the great silence no longer? Or can discussion
start only among the proletariat?
Are there to be found, anywhere in the United States, men of great
wealth, themselves perhaps beneficiaries of the system as it now is,
able to live luxuriously and to accumulate increasing wealth from their
absorption of community-produced value, who are yet sufficiently
unprejudiced to join wholeheartedly in the fight against the system that
enrich them? Are there to be found, anywhere in the United Sates, men of
great wealth who desire neither to mark themselves off from common folk
by profuse expenditures and display, nor to distinguish themselves as
donors of piles of brick and stone, whether universities, art galleries
or research laboratories, to perpetuate their names to posterity, but
who can interest themselves in the high adventure of promoting a great
reform, though this adventure bring them no honor in their world of
fashion, prestige and power? And where can there be found the owner of a
great newspaper who will see to it that at least occasionally - say
once every week -- his paper contains at least one interesting and
pointed editorial on this most basic of all economic problems? Or can we
who are the victims of this system and the victims of landlord
propaganda on tax relief for land, hope for no help whatever -- in these
days when help is so needed to spread understanding -- from the
politically powerful, the rich, and the masters of the press? Can
serious discussion, even, of reform, begin only among the inconspicuous
and the poor?
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