The Single Tax and the Tariff |
[Reprinted from The Standard, Vol.3, 28 January, 1888]
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It is often assumed, by men who are
thoroughly convinced of the justice and
importance of the single tax on land
values, that the establishment of even absolute free trade would do little toward
bring about the success of the movement
in favor of the single tax, and that
reductions of the tariff on imported
goods , or even the enactment of a purely
revenue tariff, would do nothing whatever
in that direction.
Let us consider whether this view is correct.
I.
Let the most radical advocates of the
single tax - those who deny the right of
private ownership of land - ask themselves
why they do so. Is it not because they
deny the right of the government to allow
individuals to levy the tax called rent for
their own private benefit, when it justly
belongs to the people? Is not the very foundation of their whole political creed a
denial of the justice of any system which allows a few persons to collect for their own use a tax from the whole
people, which ought to go solely to the use
of the government for the benefit of the
whole people?
Why do the radical opponents of private
property in land refuse to consent to the
payment of compensation to landlords, as
a condition of the nationalization of land?
Is there any other reason than this, that
if they agree to pay taxes for the purpose
of compensating the landlords, they practically agree to submit to the same taxation for the benefit of individuals, under
the name of taxation, against which they
rebel, under the name of rent?
If it is just and right that the people at
large should be taxed for any purpose,
other than for the support of that government which is for the benefit of all, then
it is just as well that this tax should be
called rent, as that it should go by any
other name.
Now all protective taxes are, in their
very nature, taxes levied upon the people
at large, for the benefit of the persons who
own the land upon which the protected
articles are produced, or the tools by which
those articles are made. Into their pockets the whole benefit of any protective
tariff must necessarily go.
If this is all right and proper, why is it
not equally right and proper that another
tax, called rent, should also be levied on
the people, for the benefit of land owners?
If the prosperity of America depends upon
taxing us all for the support of manufacturers, why is it not likely to be still more
promoted by taxing us for the benefit of
land owners? The protected manufacturers number less than 100,000; the land
owners number over 4,000,000. It is therefore forty times as beneficial to the nation to tax it heavily under the name of
rent, as to tax it heavily under the name
of protection.
But it will be said that the manufacturers distribute the benefits of protection in
high wages. If this is true of them, it is
equally true of the land owners. They
pay just as good wages as the manufacturers do; and they do not combine to import foreign pauper laborers, as manufacturers and mine operators do. It is said that
the manufacturers pay out 90 per cent of
their income in wages. If that is true,
then the land owners pay out 100 per cent
of theirs in the same way; because they
hire servants to make them comfortable,
builders to build them houses, butchers to
give them meat, bakers to give them
bread and coachmen to drive them about.
The land owners, therefore, are only misunderstood philanthropists, who worry
themselves with the collection of the tax,
called rent, solely for the purpose of providing poor landless men and women with
work.
Every man who votes for a protective
tariff ought, to be consistent, to vote for
high rents, too; since the more the landlords collect in rent the more they will
spend in wages.
II.
Leaving the question of consistency, let
us inquire how the abolition of private
property in land is to be brought about.
It is clear that it is a movement for the
abolition of something. What do the land
reformers want to abolish? All taxes except one.
It is an abolition movement, pure and
simple. It proposes nothing but abolition. It does not propose to create any
new taxes. Land is taxed already. The
"new crusade" simply proposes to abolish
every tax which does not fall upon the
value of land. All the rest of the scheme
will take care of itself.
Pray, how are all taxes, other than the
land tax, to be abolished if we are not
willing to abolish the tariff? How is
the tariff to be abolished altogether, if we
are not willing to abolish it in part? Are
we to refuse to abolish any taxes, until the
happy day arrives when we can abolish
all at once? We should certainly have to
wait a hundred years, probably five hundred years, before such a policy could succeed.
Those who are sincerely in favor of
abolishing all taxes except one, will, if
they have a grain of common sense, vote
for the abolition of each tax, one by one,
as fast as it can be reached. No man can
ever get to the end of a road who will not
take one step at a time. Every sincere
and sensible believer in the single land
tax, therefore, will vote for the abolition
of every other tax - with one limitation.
That limitation is that some taxes have
a tendency to draw to themselves the support of powerful interests, while others
have not; and those who want to abolish
all indirect taxes should be careful to strike
first at those which have the support of
these interests, so as to get them first out
of the way. When those are got rid of
the others will fall quickly enough. But,
if the weakly supported taxes are abolished
first, the others will be all the harder to get
rid of. If you want to topple over a row
of bricks, put the heaviest one at the end
and knock that over; all the rest will fall
without your touching them. But if you
begin with a light thin brick you may have
to pull down each, one by one.
The tariff is the heavy brick in taxation;
and the protective part of the tariff is the
solid strength of the whole. Strike out
protection, and no one will care to maintain the tariff. Abolish the tariff, and all
internal revenue taxes will be abolished on
the same day, without a murmur from any
quarter. But if you abolish the internal
revenue taxes first, you give to the tariff
enormous new strength and continue indefinitely its protective features, which are
the greatest obstacle to the adoption of the
single land tax that ever existed or ever
can exist.
Quite apart from the abstract question of
free trade, therefore, the total abolition of
the tariff is indispensable to the establishment of the single tax. Those who insist
upon maintaining any tariff insist upon
maintaining rent and private property
in land, for the two things are bound
up together. Those who vote to repeal internal taxes upon liquors and tobacco help
to keep the tariff in existence for the next
fifty years, because the influence of capital,
which is now divided between the two
systems, will then be concentrated in support of the tariff, and the plea of necessity
of revenue will be successfully used for
fifty years to keep up a high tariff.
But the tariff cannot be abolished in a
day. It must be taken down in pieces.
It is as absurd to refuse to vote for reductions in the tariff, while favoring its
total abolition, as it would be to insist that
a wall should be taken down all in one instant or not at all. The wall must be
taken down brick by brick; and so must
the tariff. Every reduction makes the
next step easier.
In short, the believers in the single tax
doctrine, including those who support it
as a means of nationalizing the land, as
well as others, are simply tax abolishers.
If they will not vote to abolish existing
taxes, they do not really believe in the doctrine which they profess. If they will not
vote to abolish any taxes, unless they can
abolish all at once, they will have to wait
until we are all dead, buried and forgotten.
If they vote to abolish the taxes on whisky
and tobacco, before the tariff taxes are repealed, they play into the hands of their
enemies; they unite the influence of capital against themselves, which is now
divided to some extent; and they postpone
the possibility of their own success for
half a century.
All that is necessary to be accomplished
in order to secure the speedy triumph of
the land tax is to abolish the tariff. When
public sentiment is brought to that point,
all indirect taxation will go with the tariff
in a single day. When the nation comes
down to direct taxation, the equity and
accuracy of the single tax on the value of
land alone will be so clear and unmistakable, its superiority over the income tax
and all other direct taxes so palpable, that
no further serious effort will be needed to
insure its adoption.
Whoever votes to maintain any protective duties in the tariff votes to maintain
the tariff itself.
Whoever votes for any tariff votes to
defeat the single tax.
Whoever refuses to vote for "tariff reform," on the ground that it does not go
far enough (as, of course, it does not), refuses to take the first step on the long road
which leads to land reform, because he
cannot leap over the whole length of the
road at once.
Whoever does any of these things does
all which at present lies in his power to
perpetuate private property in land, the
rent system and the system of indirect
taxation, under which the poor always
have paid, and always will pay, ten times
as much as the rich.
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