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| Land Value
Taxation and the Green Movement |
[A paper presented at
the Joint Georgist Conference, University of Pennsylvania,
Philadelphia, Pennsylvania, 1989]
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I discovered land value taxation through the Green movement and was
attracted to it for three reasons. First, it promised to solve the basic
problems I was encountering: the difficulty of gaining access to land
without first being well-off. Second, it was a practical,
self-regulating tool for doing the job, not just a statement of policy
intentions to be implemented by bureaucratic fiat. Third, it promised to
appeal to Greens and non-Greens alike, and within either group to the
whole spectrum of political opinion from Left to Right. It seemed,
therefor, a likely horse to back.
I made my discovery and backed my horse precisely 10 years ago, in July
1979. In the decade since, however, I have come to accept three rather
less comfortable truths. First, though the basic moral axiom that every
person in every generation has an equal right to the use of land appears
to be common ground, land value taxation is not commonly seen as its
necessary logical outcome. Second, the law of rent is indeed, as J. S.
Mill wrote, the pons asinorum of political economy ("i.e.
5th proposition of 1st book of Euclid, hence, anything found difficult
by beginners" - Concise Oxford Dictionary, 4th Edition).
Third, just as land value taxation offers something to all political
viewpoints, it also fells between all stools.
The Green movement is strong on goals (of the alternative kind) but
weak on practical policies for achieving those goals. It is therefore
host to many nostrums claiming to show how things really work and how to
put them right. In the UK, land value taxation is seen by many Greens as
one such nostrum, propagated by a quasi-religious sect preaching the
American frontiersman Henry George and reciting mumbo-jumbo about land
rents. Although it has found its way into the rolling Manifesto of the
Green Party, it occupies a cobwebbed compartment of its own ("Land
Tenure") and is not seen as an important part of economic policy.
The case of the UK Green Party is instructive, as it is one of the few
Green parties that has been faced with the claims of Georgists. In 1981
it devoted both its conferences to land tenure policy, but despite
intense and exhaustive debate it failed to reach agreement and so has
let sleeping dogs lie ever since.
The aims of the policy were quickly agreed as being to "1)
reestablish land as a common heritage and community asset, no longer
subject to monopoly or speculative pressures; 2) establish for all equal
rights to occupy land, so providing a proper framework for the
ecological use of land in small units; 3) guarantee security of tenure
to occupiers of land on this new basis; 4) ensure that returns from land
which are in no way due to the efforts of individuals shall accrue to
the community."
The controversy raged over whether these aims were best achieved by "positive"
land redistribution or by a land value tax (Community Ground Rent). It
was waged by a few initiates on either side whilst the majority of
members attempted to understand the complex issues involved. Those
against CGR were convinced that it was a flat rate tax per acre of
farmland, such as was supposedly used by colonists to drive peasants
into cities, which would only result in the concentration of land in the
hands of rich farmers and force it to be over-used. They also thought it
unworkably complex to implement - unlike their own proposals of
stripping the public sector of its surplus acres, putting statutory
limits on the size of holdings, and selling or letting the land thus
obtained by a National Land Bank or local authorities to individuals and
collectives. Apparently CGR found its way into the Party Manifesto
despite time running out before the alternative proposals could be put
at the first conference. It was then rejected in favour of statutory
limits at the second conference, but the "Great Land Debate"
was not formally concluded, and the Manifesto was not amended.
The presence of CGR in the Green Party's Manifesto therefore seems to
be an accident of history. Although opponents have softened their
attitude somewhat since, they are still awaiting a two-sentence
explanation of why CGR would be good for small fanners. CGR is still a
mystery to the majority of members, and hence an electoral embarrassment
when picked up by opposing parties in search of scare stories.
Turning to other Green parties, the forerunner of them all, the Values
Party of New Zealand, appears to have understood the land value tax,
perhaps because of its Maori connections, but it barely survives. The
most famous, Die Grunen of West Germany, is not acquainted with it, just
as (apart from its Marxist elements) it is not acquainted with any
economic policy. Its economic spokesman in 1985 regarded the existence
of vacant houses in German cities as "a political problem, not
necessarily a problem of property," which could be solved by having
the will to enforce already existing laws "prohibiting this kind of
abuse."
The emergence of "shallow ecology" in the last few years, the
mainstream response to the international issues of acid rain, the
greenhouse effect and the hole in the ozone layer, may hold out more
promise for the spread of land value taxation than the earlier emergence
of the Greens, or "deep ecology." This is partly because
market solutions to problems are more intelligible to Rightward-leaning
non-Greens, and partly because such solutions involve creating new types
of property which have not yet been converted into private vested
interests and thus do not present the usual compensation problems.
Carbon emission charges on fossil fuel burning, such as are currently
being considered within the EEC, effectively extend the public domain
and charge rent for its use. Pollution and resource taxes (advocated by
Friends of the Earth and the Green parties), and marketable pollution "permits,"
are now in vogue and are essentially Georgist ways of sharing scarce
resources. In view of the revenue that sufficiently onerous taxes or
permits might raise, it is possible to envisage a big shift away from
current forms of public revenue to "green revenue." Given its
educational impact, and dialogue over compensation, it is possible that
that process may spill over to existing forms of land ownership.
Deep Greens and the Left, however, either instinctively distrust market
solutions or reject them categorically. A summary quote from an "eco-socialist"
active in the UK Green Party may serve to show how little Georgism has
penetrated this comer of economic thinking: "... while Green
rhetoric often implies a wholesale rejection of the economic status quo,
few of the concrete proposals envisage basic structural change, tending
rather to suggest piecemeal ecological or social reforms. There is no
advocacy of changes in the ownership of large companies, for example;
and although the 1987 Green Party Manifesto carries a marginal note
pointing out that '52% of the UK's land is owned by a mere 1% of the
population,' the policy on land tenure - levying of Community Ground
Rent - stops short of envisaging any expropriation of that rich one
percent."
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