American Farmers and the Single Tax
J.E. Barr
[A letter to the editor in response to an article by
Whidden Graham on "The American Farmer and the Single Tax".
Reprinted from Land and Freedom, March-April 1927]
Dear Sir: I read with much interest in your last issue an article
entitled The American Farmer and the Single Tax, in which the idea is
set forth that the farmer has been neglected by the Single Tax
advocate in favor of "labor" and that little hopes of
success can be entertained until the farmer has been included in the
programme.
This sounds strange to me in view of the fact that my reading and
experience had led me to think that the mistakes made with reference
to Georgism were mostly of the opposite character. I have a dim
recollection of reading in one of Henry George's subordinate books an
answer to a criticism that had been passed on Progress and Poverty
to the effect that it could only apply to agricultural land. Mr.
George went into detail to show that it would apply to all land. This
explanation interested me much at the time because I then saw
something I had not been able to see before that it was broader than a
rural proposition. About the same time a friend of mine sojourned in
my home for a few days and spent his extra time reading Progress
and Poverty, but before he had finished it he threw it down in
disgust and said it was simply a scheme to get everybody out on the
farm and set them raising potatoes, and then what would we do for
other things which were as necessary to our well being as farm
products. In answer to that criticism I tried to convey to him some of
my recently acquired information about it applying to all lands, but
without avail. This mistake, as I now think, was due to Mr. Georges'
frequent use of agriculture as an illustration. But I am at a loss to
discover how the rural application would be missed entirely by the
latter day leaders.
It seems to me the farmers are now at a stage where they would be
open to the Single Tax Philosophy as a solution for their problems. In
view of the fact that such problems are growing serious and no other
solution seems to offer itself.
I talked with a farmer recently who was complaining about the heavy
and unjust burden of taxation. He had probably never heard of the
Single Tax but gave utterance to one of the most common Georgian
arguments evidently thought out by himself. He said here are two
farmers. Both hard workers and very economical. They had saved a
little money. Their farms are considerably run down. So one of them
takes his money and improves his house and barn making a great
difference in the appearance but adding nothing to his income and
increasing his taxes. The other buys tax-free bonds and leaves his
premises as they were adding considerable to his income, but his taxes
remain as they were. He thought it was all very unjust. Is not a mind
like that open to the Georgian philosophy?
I have also been impressed lately with the fact that the farmer who
lives a mile or more from town and off the improved road (and that is
where the average farmer still is in spite of the vast expansion of
the city and good roads) realizes that he possesses little or no site
value, though he has no knowledge of that term. I know of four heirs
to an estate consisting of a farm on a "dirt" road who were
trying to dissolve their joint ownership. One of them proposed to buy
out the others at 700 per share and the others proposed to sell at
$900. I do not know the final price agreed upon but it was not in
excess of $3,600. Yet there was a good house and barn and other
buildings of the vintage of the '90s which could not be built now for
$10,000.
I also saw a farmer building a commodious barn on his farm with all
the modern equipment for dairying, and his neighbors were criticising
him because they said he is spending money more than he could sell the
farm land for, including the barn and the house.
I rode out sometime ago with a real estate agent who had a number of
farms listed. As we rode up to one farm after another I said what are
you asking for this farm, and he told me. I said tha.t the buildings
are worth more than that, and he agreed with me, adding "we are
offering these farms at very reasonable prices." But none of them
sold at those figures. All this within fifteen miles of a city of
125,000 people. It appears to me under such conditions it ought not to
be difficult for a good persuader to make th farmer see that they
possess no site value in such cases and therefore to put all the tax
on site value would not bear heavily on them. I understand also that
the programme of the school authorities call for the gradual closing
of the "little red school house" and consolidating in the
villages. If that is the case it will withdraw still more of the site
value from the "dirt" road farms. If you can indeed take
something from nothing, for as I recall Henry George's teaching, the
schoolhouse was one of the public improvements that made site value.
This situation may be a little peculiar, for we have been for amny
years under what our Ohio neighbors call "The Pennsylvania Single
Tax" and that is different from most of the tax systems in the
rural states. But such a situation is in keeping with George's
teaching that under the operations of his philosophy much land would
yield no tax though it would not be affected in any other way.
I do not know how it would work out in the West among the soaring
farm prices. But I am under the impression that those figures
represent speculative value or something else than either site or
utility value.
It seems to me that under the Single Tax if it were generally applied
farming would approach the condition of a tax-free industry, not even
being required to pay a site tax in many cases, and in view of the
present groaning under the tax burden there ought to be some power of
appeal in that.
I do not think the farm problem is a problem apart from others, but
just a phase of the general problem. And since his is still one of the
leading industries I do not believe we are going to solve anybody's
problems without including him. If the Single Tax authorities today
have overlooked him it is time for them to start a movement with the
slogan "back to Henry George" for certainly he had the
farmer in mind.
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