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A Deed to Land: A License to Steal? |
Suppose some people were issued licenses to steal. Each person who
owned one of these licenses to steal was allowed to rob any of the
people within the territory the license covered. Each license owner
would decide how much she could rob the people in that territory, before
they might get fed up and move to the territory of a slightly less
oppressive robber. Suppose the owner of any license to steal was also
allowed to sell the license to another robber.
If such licenses to steal existed, they should be outlawed, shouldn't
they? Well, they do exist. They're called "deeds" to land. Our
current type of deed to land allows a "landlord" to collect as
much "rent" as she can get away with, from the tenants within
the territory covered by the deed -- even if the landlord provides no
product or service at all.
If the landlord does provide a product, such as renting some people a
house, or does provide a service, such as building maintenance, then
that part of the rent rightfully belongs to the landlord. But the deed
also allows the landlord to demand additional money from people, based
on the location value of the land, even though the landlord did not
produce that land (no person produced the land). That part of the rent
-- the land rent -- is merely the collection of a payment by a person
who has provided no product or service. It is a type of robbery, and is
no different than a license to steal.
Some might reply that the landlord has a right to collect that part of
the rent, because she paid for the deed, fair and square. But if someone
pays for a license to steal, stealing is still wrong, and should be
illegal. We need to abolish these licenses to steal. A change should be
made in our deed laws, forbidding any person from collecting land rent,
based on the location value of the land, because that involves no
production of any product or service, and is merely a form of robbery.
This deed reform could be accomplished by Thomas Paine's proposal,
which prevents any person from receiving income derived from the
location of land. Each deed holder would pay the community a land rent
(a site value tax), based on the location value of the land (not the
buildings on it). The revenue from the community land rent would then be
divided among the members of the community, as a land dividend, or used
for a fund to buy or rent land for those who do not own land, or who own
land of less than average land value.
Note that any landlord who owns land of average land value would not
pay any net community land rent, since the community land rent paid
would be equal to the land dividend received by that person. Only those
holding deeds to land of more than average land value would pay a net
amount of community land rent.
The part of the rent that is based on providing a house, or providing
building maintenance, would rightfully 'belong to the landlord. But the
part of the rent that is based on the value of the location would not go
to the landlord, since the landlord would be required to transfer that
part of the rent, in the form of community land rent. This way, a deed
to land would no longer be a license to steal.
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