Taxation and How Revenue is Being Raised
James R. Brown
[Reprinted from Land and Freedom, July-August
1928]
AS a new added
feature in the Times we will publish once a month an article on
taxation. These articles are prepared by James R. Brown,
President of the Manhattan Single Tax club of New York City. Mr.
Brown is an authority on taxation and is well known to
Batavians. He has spoken here on three occasions on the subject,
twice before the Kiwanis club and once before the Rotary club,
and through his talks on sensible taxation he has won many over
to the method of handling taxation adopted by the club, of which
he is president. The contention of the Manhattan Single Tax club
is that all assessments should be made on land values instead of
property values, and Mr. Brown has often pointed out how a
citizen or taxpayer who improves a piece of vacant property by
building a fine residence upon it, or a business building, and
does a service to his community, is later punished by the
community with an unjust tax, while the owner of the vacant
property beside the one improved is let off easy with only a
very small assessment for being a "land hog." Editors,
Batavia, New York Times
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Taxation is the most important thing in civilized life. How we raise
public revenue has a greater influence for good or evil in human
society than anything else we do individually or collectively, it is
the omnipotent hand that opens or closes the door of opportunity. It
can give food to the hungry, clothing to the naked, shelter to the
outcast, or it can and does take property from the industrious and
comforts from the thrifty. It can turn hell into heaven or heaven into
hell.
The power to tax is the supreme power of the whole people. It is the
power to create, it is the power to destroy. The right use of this
great power will make the desert bloom like unto a garden; the wrong
use is to lay waste the garden like unto a desert.
We can encourage industry, help development and stimulate progress,
or we can do as we now do punish thrift, give a premium to idleness,
strangle industry, destroy progress and lay waste the natural
opportunities of labor and capital. The important thing about taxation
is the incidence. Taxes that fall upon labor values restrict
production and increase the cost of living. Taxes that fall oh land
values open up opportunities to labor and capital, raise wages and
interest and lower ground rent.
Taxation is payment for social service. Honesty in taxation requires
the community to charge for what it does for the citizen, but not to
charge the citizen for what the citizen does for himself. Our present
system of taxation is simply confusion worse confounded. Our tax lists
are but collections of guesses from top to bottom and involve the
crimes of grand and petit larceny.
We rob the citizen of his private property when we tax labor products
and we rob society of social property when we fail to take for social
use all land value. We raise social revenue by taking from every man
who can show tangible evidence that he has done something for himself,
and at the same time we give millions every year of social value to
those who cannot show that they have rendered any service whatever to
themselves or to society.
The only and the true measure of the value of social presence and
service to a citizen, is the value of the land of which he has
exclusive possession. Land value is the value that attaches to land,
irrespective and independent of the improvements thereon, and
reflects, not personal effort and production, but social presence and
social activities. A large city with modern social utilities, will
have much land value. A small village with few and poor public
utilities, will have little land value.
All social activities are reflected at once in increased value of
land, not in the increased value of the buildings or personal
property. When, for instance, we change from a low-pressure water
system to a high-pressure system, the lots of the town, vacant as well
as improved, increase in value because of the change, but the
buildings do not.
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