Rent Theory and the Single Tax Program

John J. Dillon

[An article written by the editors of the Single Tax Review, appearing in the November-December 1921 issue of the Review]

There ran through many issues of the Rural New Yorker a series of articles by John J. Dillon, entitled "A Primer of Economics." Part one, which appeared in the issue for Nov. 12, 1921, is entitled "What is Economic Rent," and the treatment leaves nothing to be desired. Mr. Dillon, after defining economic rent, asks this pertinent question:

"To whom does economic rent rightly belong? Since the community creates economic rent, it rightly belongs to the community. Since economic rent is created by the community, and belongs to the community, why does it not go to the community?

Does the landlord do anything to create economic rent? The landlord can do nothing as an individual to create economic rent. It comes into being whether he likes it or not, and whether he wants it or not. It is created entirely by the needs of the people of the community and is paid by them."

Mr. Dillon then shows the similarity between city land and cultivated land, the principle governing rent being the same.

Part three, appearing in the issue of the Rural New Yorker for Nov. 26, treats of the Single Tax, and Mr. Dillon says:

"The Single Tax would not change the amount of revenue to be raised. It would shift the payment of it from those who now pay it, who are mainly the ultimate consumers, to the owners of land. From information at hand and experiments already made, it would seem that the option would not affect much, if any, the farmer's direct tax for local expenses."

Mr. Dillon calls attention to the fact that while government has encouraged investment in land, it has not guaranteed it. But as government has encouraged such investment Mr. Dillon would proceed with caution, and suggests a shifting of taxes to absorb five per cent. of land values annually until the total land value is taken. He says that if the American people are convinced of a great principle they would find a way to put it into practice without hardship to the individual.

We cannot too strongly commend this very notable series of articles They should find their way into book form. John J. Dillon the author, has been publisher of the Rural New Yorker since 1893. He has been president of the State Agricultural Society, and was State Commissioner of Foods and Markets in 1914. Coming from such a source this remarkable contribution to economic discussion and the practical endorsement of the Single Tax programme, is of great value. Mr. Dillon's conclusions should be brought to the attention of granges and farmers' organizations everywhere.