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When Will Land-Value Taxation Be the
Law of the Land? |
| [Reprinted from The
Gargoyle, February, 1961] |
A few years ago, numbers of the workers for land-value taxation felt
discouraged that, inspite of the logical simplicity of the extension of
equality of opportunity offered by the adoption of land value taxation,
the prospects of its becoming law were very slim or far distant in time.
The reason for this was the growing trend of public desired to impose
more and more obligations upon governments, national, state and local.
To do this, governments needed more and more tax revenues;, and
resorted to sales taxes, income taxes and excise taxes to meet the
demands.
Most discussions of the means to raise additional tax revenue centered
upon two main contentions: that ability to pay and relief of the_ tax
burden on homeowners should control any new revenue raising legislation.
Most of the states and many municipalities now collect income and sales
taxes. It must be apparent to all serious thinkers that the graduated
income tax serves, not only as a source of revenue, but as a social
leveller, attempting to equalize incomes. It must be apparent, even to
those who misconstrue the time hallowed concept of true liberty and a
good life, the ability of every man "to sit under his own vine and
fig tree -- with none to make him afraid" that for the state to
forcibly take from some and give to others may have unwelcome
consequences.
Evidences of this are found in the so called "task-force report"
made by Professor Samuelson, economist at the Massachusetts Institute of
Technology to the new administration, in which report, Prof. Samuelson
advises that if economic conditions become worse, 3 or 4% of the income
taxes paid by individuals should be remitted so that the purchasing
power thus released will increase the effective demand for goods and
thus stimulate production and employment. A serious thinker must, from
such advice and reasoning deduce the corrolary, that for the state to
take from individuals the wherewithal, to satisfy desires must decrease
the effective demand for goods, decrease production and employment. Of
course, the argument goes that government will spend the taxes or
armaments, roads, etc. and thus the purchasing power of the tax money
will enter into the economy with only a change in the kind of goods
being purchased. If this argument were valid, then a remission of taxes
to individuals as advised by the task force report would have little
effect upon the economy and would be futile.
The author of the task-force report, Prof. Samuelson, is the same
economist who advocates the Keynesian remedy of government spending,
even deficit spending, to remedy a business cycle decline and also
believes that a constant inflation of the purchasing media up to 3 or 4%
per annum is a proper price to pay for "full employment." Yet
even he now advises that a remission of personal income taxes up to 4%
will be beneficial to the economy. One wonders why he limits the
remission to 4%.
There are other evidences that the time may be shorter than we believe
when the fallacies of present tax methods will be widely understood and
remedied.
The fear that creeping socialism so evident a few years ago would gain
adherents or be resignedly accepted and thus force us to reap the bitter
harvest which a similar regime caused in Great Britain, now shows signs
of abatement. The recent election, while not a clear choice to the
voters of a private enterprise versus a government intervention economy,
still had some interesting and significant signposts as to future
ideology. The Republican platform and candidate were clearly not
outright advocates of a free-market economy, but they certainly did not
contemplate the amount and degree of intervention by government that the
Democratic platform and candidate did.
The closeness of the vote, while it may be partially explained by
emotional factors, certainly was some evidence that the pendulum
swinging towards more and more intervention and paternalism may have
reached or nearly reached its limit and a reverse action may have gained
a start.
The avowed representative of the conservative view, Barry Goldwater,
showed that his influence and followers were greater than had been
credited prior to the campaign for election. Goldwater did make clear
the conservative view that the Welfare State concept will bring dire
results. He did not seek popularity by mouthing generalities, but
forthrightly stated what heretofore had been unpopular views. He was not
a "middle-roader." And yet he found supporters in all parts of
the country. Recently, in a publicised statement, he noted that there is
a "conservative swell" of adherents that is clearly
discernible "west of the Hudson River." Perhaps, then, the
trend to more paternalism is at its crest or is waning.
The article in House and Home, "widely read, caused much
favorable comment by writers in other periodicals including U.S.
News and World Report and Human Events. It is apparent to
many that the feared trend to a paternalistic managed economy has lost
its vigor and that in seeking other means to remedy the unbalance in our
economy, the danger of the high cost of land is not the least of the
problems for which remedies or solutions must be found.
From the fact that the economy of West Germany has had an increase in
productivity over the past ten years of over 8% per annum while in the
United States the increase in productivity has been at a rate less than
3% causes serious thinkers to find the reasons. When it is demonstrated
that in West Germany, the trend has been toward a free-market, economy
less paternalism by government, with convertible, non-inflationary
currency, many thinkers draw their conclusions that thus are the maximum
material, human desires satisfied.
First, before a trend develops, serious thinkers must determine cause
and effect relationships. Next, articulate thinkers must acquaint others
through the mass media so widely used today. Then when it becomes
apparent that respected serious individuals are willing to first admit
and later to espouse a correct diagnosis of conditions and a probable
remedy for them, the trend has started and will gain momentum.
It may well be that the astounding fact that in many of the colleges
and universities a poll of the students made during the pre-election
days showed a majority of them favoring an individualistic rather than a
paternalistic security-minded course as most desirable, betokens a new
day. A few years ago, both the faculties of the universities and most of
the students were advocating a shift to more and more government
intervention and control of their futures. Now, the students are ahead
of their faculties in reversing the trend.
So, it may well be that the pessimism which prevailed a few years ago
about the possibility of remedying the economic woes, not only in this
country but in the places where poverty and starvation are more
apparent, need no longer prevail. By continuing to make clear the cause
or causes of business cycles, unemployment, want and poverty and the
simple logical way in which the major cause can be treated by adoption
of land-value taxation, we can each swell the growing trend to reverse
the illogical actions of the past.
Take hope, all ye of faint heart? You will be on the winning team yet.
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