I shall briefly state the fundamental
principles of what we who advocate it call the Single Tax.
We propose to abolish all taxes save one single tax
levied on the value of land, irrespective of the value of the improvements in or
on it.
What we propose is not a tax on real estate, for real
estate includes improvements. Nor is it a tax on land, for we would not tax all
land, but only land having a value irrespective of its improvements, and would
tax that in proportion to that value.
Our plan involves the imposition of no new tax, since
we already tax land values in taxing real estate. To carry it out we have only
to abolish all taxes save the tax on real estate, and abolish all of that which
now falls on buildings or improvements, leaving only that part of it which now
falls on the value of the bare land, increasing that so as to take as nearly as
may be the whole of economic
rent, or what is sometimes styled the "unearned increment of land
values."
That the value of the land alone would suffice to
provide all needed public revenues--municipal, county, State, and
national--there is no doubt.
To show briefly why we urge this change, let me treat
(1) of its expediency, and (2) of its justice.
From the Single Tax we may expect these advantages:
1. It would dispense with a whole army of tax gatherers
and other officials which present taxes require, and place in the treasury a
much larger portion of what is taken from people, while by making government
simpler and cheaper, it would tend to make it purer. It would get rid of taxes
which necessarily promote fraud, perjury, bribery, and corruption, which lead
men into temptation, and which tax what the nation can least afford to
spare--honesty and conscience. Since land lies out-of-doors and cannot be
removed, and its value is the most readily ascertained of all values, the tax to
which we would resort can be collected with the minimum of cost and the least
strain on public morals.
2. It would enormously increase the production of
wealth--
(a) By the removal of the burdens that now weigh upon
industry and thrift. If we tax houses, there will be fewer and poorer houses; if
we tax machinery, there will be less machinery; if we tax trade, there will be
less trade; if we tax capital, there will be less capital; if we tax savings,
there will be less savings. All the taxes therefore that we would abolish are
those that repress industry and lessen wealth. But if we tax land values, there
will be no less land.
(b) On the contrary, the taxation of land values has
the effect of making land more easily available by industry, since it makes it
more difficult for owners of valuable land which they themselves do not care to
use to hold it idle for a large future price. While the abolition of taxes on
labor and the products of labor would free the active element of production, the
taking of land values by taxation would free the passive element by destroying
speculative land values and preventing the holding out of use of land needed for
use. If any one will but look around today and see the unused or but half-used
land, the idle labor, the unemployed or poorly employed capital, he will get
some idea of how enormous would be the production of wealth were all the forces
of production free to engage.
(c) The taxation of the processes and products of labor
on one hand, and the insufficient taxation of land values on the other, produce
an unjust distribution of wealth which is building up in the hands of a few,
fortunes more monstrous than the world has ever before seen, while the masses of
our people are steadily becoming relatively poorer. These taxes necessarily fall
on the poor more heavily than on the rich; by increasing prices, they
necessitate a larger capital in all businesses, and consequently give an
advantage to large capitals; and they give, and in some cases are designed to
give, special advantage and monopolies to combinations and trusts. On the other
hand, the insufficient taxation of land values enables men to make large
fortunes by land speculation and the increase of ground values--fortunes which
do not represent any addition by them to the general wealth of the community,
but merely the appropriation by some of what the labor of others creates.
This unjust distribution of wealth develops on the one
hand a class idle and wasteful because they are too rich, and on the other hand
a class idle and wasteful because they are too poor. It deprives men of capital
and opportunities which would make them more efficient producers. It thus
greatly diminishes production.
(d) The unjust distribution which is giving us the
hundred-fold millionaire on the one side and the tramp and pauper on the other,
generates thieves, gamblers, and social parasites of all kinds, and requires
large expenditure of money and energy in watchmen, policemen, courts, prisons,
and other means of defense and repression. It kindles a greed of gain and a
worship of wealth, and produces a bitter struggle for existence which fosters
drunkenness, increases insanity, and causes men whose energies ought to be
devoted to honest production to spend their time and strength in cheating and
grabbing from each other. Besides the moral loss, all this involves an enormous
economic loss which the Single Tax would save.
(e) The taxes we would abolish fall most heavily on the
poorer agricultural districts, and tend to drive population and wealth from them
to the great cities. The tax we would increase would destroy that monopoly of
land which is the great cause of that distribution of population which is
crowding the people too closely together in some places and scattering them too
far apart in other places. Families live on top of one another in cities because
of the enormous speculative prices at which vacant lots are held. In the country
they are scattered too far apart for social intercourse and convenience,
because, instead of each taking what land he can use, every one who can grabs
all he can get, in the hope of profiting by its increase in value, and the next
man must pass farther on. Thus we have scores of families living under a single
roof, and other families living in dugouts on the prairies afar from
neighbors--some living too close to each other for moral, mental, or physical
health, and others too far separated for the stimulating and refining influences
of society. The wastes in health, in mental vigor, and in unnecessary
transportation result in great economic losses which the Single Tax would save.
Let us turn to the moral
side and consider the question of justice.
The right of property does not rest upon human laws;
they have often ignored and violated it. It rests on natural laws--that is to
say, the law of God. It is clear and absolute, and every violation of it,
whether committed by a man or a nation, is a violation of the command,
"Thou shalt not steal." The man who catches a fish, grows an apple,
raises a calf, builds a house, makes a coat, paints a picture, constructs a
machine, has, as to any such thing, an exclusive right of ownership which
carries with it the right to give, to sell or bequeath that thing.
But who made the earth that any man can claim such
ownership of it, or any part of it, or the right to give, sell or bequeath it?
Since the earth was not made by us, but is only a temporary dwelling place on
which one generation of men follow another; since we find ourselves here, are
manifestly here with equal permission of the Creator, it is manifest that no one
can have any exclusive right of ownership in land, and that the rights of all
men to land must be equal and
inalienable. There must be exclusive right of
possession of land, for the man who uses it must have secure possession of land
in order to reap the products of his labor. But his right of possession must be
limited by the equal right of all, and should therefore be conditioned upon the
payment to the community by the possessor of an equivalent for any special
valuable privilege thus accorded him.
When we tax houses, crops, money, furniture, capital or
wealth in any of its forms, we take from individuals what rightfully belongs to
them. We violate the right of property, and in the name of the State commit
robbery. But when we tax ground values, we take from individuals what does not
belong to them, but belongs to the community, and which cannot be left to
individuals without robbery of other individuals.
Think what the value of land is. It has no reference to
the cost of production, as has the value of houses, horses, ships, clothes, or
other things produced by labor, for land is not produced by man, it was created
by God. The value of land does not come from the exertion of labor on land, for
the value thus produced is a value of improvement. That value attaches to any
piece of land means that that piece of land is more desirable than the land
which other citizens may obtain, and that they are willing to pay a premium for
permission to use it. Justice therefore requires that this premium of value
shall be taken for the benefit of all in order to secure to all their equal
rights.
Consider the difference between the value of a building
and the value of land. The value of a building, like the value of goods, or of
anything properly styled wealth, is produced by individual exertion, and
therefore properly belongs to the individual; but the value of land only arises
with the growth and improvement of the community, and therefore properly belongs
to the community. It is not because of what its owners have done, but because of
the presence of the whole great population, that land in New York is worth
millions an acre. This value therefore is the proper fund for defraying the
common expenses of the whole population; and it must be taken for public use,
under penalty of generating land speculation and monopoly which will bring about
artificial scarcity where the Creator has provided in abundance for all whom His
providence has called into existence. It is thus a violation of justice to tax
labor, or the things produced by labor, and it is also a violation of justice
not to tax land values.
These are the fundamental reasons for which we urge the
Single Tax, believing it to be the greatest and most fundamental of all reforms.
We do not think it will change human nature. That, man can never do; but it will
bring about conditions in which human nature can develop what is best, instead
of, as now in so many cases, what is worst. It will permit such an enormous
production as we can now hardly conceive. It will secure an equitable
distribution. It will solve the labor problem and dispel the darkening clouds
which are now gathering over the horizon of our civilization. It will make
undeserved poverty an unknown thing. It will check the soul-destroying greed of
gain. It will enable men to be at least as honest, as true, as considerate, and
as high-minded as they would like to be. It will remove temptation to lying,
false, swearing, bribery, and law breaking. It will open to all, even the
poorest, the comforts and refinements and opportunities of an advancing
civilization. It will thus, so we reverently believe, clear the way for the
coming of that kingdom of right and justice, and consequently of abundance and
peace and happiness, for which the Master told His disciples to pray and work.
It is not that it is a promising invention or cunning device that we look for
the Single Tax to do all this; but it is because it involves a conforming of the
most important and fundamental adjustments of society to the supreme law of
justice, because it involves the basing of the most important of our laws on the
principle that we should do to others as we would be done by.
The readers of this article, I may fairly presume,
believe, as I believe, that there is a world for us beyond this. The limit of
space has prevented me from putting before them more than some hints for
thought. Let me in conclusion present two more:
1. What would be the result in heaven itself if those
who get there first instituted private property in the surface of heaven, and
parceled it out in absolute ownership among themselves, as we parcel out the
surface of the earth?
2. Since we cannot conceive of a heaven in which the
equal rights of God's children to their Father's bounty is denied, as we now
deny them on this earth, what is the duty enjoined on Christians by the daily
prayer: "Thy kingdom come, Thy will be done, on earth, as it is in
heaven?"
