Comments on
Letters on Taxation
by Edwin Burgess
Marion Mills Miller
[Excerpted from Chapter II - Land-Value Taxation [The
Single Tax] of the book, Great Debates In American History,
published in 1913 by Current Literature Publishing Company, New York]
In his first and second letters -Mr. Burgess showed the evils which
arose from the existing use of the powerful instrument of taxation and
the good which would result from confining it to its sole beneficent
purpose, the destruction of monopoly.
Being in the county clerk's room of the court house, I saw a large
pile of papers headed "Statement of Property," to be filled
out and sworn to by every resident owner. "The number and value
of horses and cattle, mules, and asses, sheep, hogs, pleasure
carriages of every description, watches, moneys and credits,
merchant's stock, manufacturer's stock and other articles of personal
property," which is everything that one person could sue another
for stealing.
Now I could not help thinking somewhat on the cost as well as
consequence of such a method of taxing people for the support of
government.
1. Taxing people for their personal property - on their oath - is a
premium on perjury, because those who lie the most pay the least
taxes, and children born under such influences will be famous for
lying-if there is any connection between cause and effect in the
condition of parent and offspring.
2. The means of valuing or assessing are very expensive, thus
increasing the cost of government as well as the cost of corruption.
3. Taxing personal property prevents production, because the tax
being added to the article for sale increases its price in proportion
to the means of buying. Hence, less is sold and less is made, and the
makers are less employed; and, having consequently less with which to
buy, the makers of other things will be less employed also - till the
surplus workers will become paupers and suffer much misery in
consequence; many will become hopeless and reckless because hopeless.
Some will be tempted to commit crime for the temporary alleviation of
their misery, which, repeated, soon becomes a habit; thus the tax on
personal property, or the product of industry, increases the amount of
paupers and criminals, while the cost of keeping paupers and
criminals, officers and legislators, increases the amount of tax and
the cost of government, of course. If any person puts up a new fence,
or makes any visible improvement which employs the unemployed and
beautifies the city - he is taxed annually in proportion to the evil
he prevents and the good he does.
4. Taxing personal property is inquisitorial, burdensome, and
aggressive against -our right to labor and enjoy the fruit of our toil
unmolested; so long as we injure no one, we should be protected
against aggression instead of suffering aggression.
5. Taxing people in proportion to their industry prevents industry,
because when an industrious person labors twelve hours per day
successfully he must pay twelve times as much taxes because he has
made twelve times as much property to be taxed as if he had worked
only one hour per day, and besides the limit of his means to pay the
tax, whether in a watch, a piano, or a horse, no one likes to be taxed
for the idleness of others, and he feels the injustice also, and
improvements are thus prevented which would profitably employ the
idle.
6. Taxing personal property raises the price of land, and thus
promotes its monopoly by the rich, because land being the source of
our subsistence, which labor develops or increases, from which, and on
which, all must live, and money instead of manhood being the
qualification for owning land, it follows that, in proportion as the
taxes are on personal property, the land will be exempt, and it will
be thus comparatively cheap or easy for the rich to monopolize; so
that if all the taxes were on the land it would sell for the lowest
price and would be most difficult to monopolize, but, if all the taxes
were on personal property and none on the land, then the land would
sell for the highest price, and labor would sell for the lowest price
because of the excessive competition of the landless and destitute
workers, who, by selling their labor for the smallest portion of its
produce, would keep the land at the highest possible price; so, when
you want land to be low and wages high, put all the taxes on the land,
but, if you prefer labor to be low and land high, you have only to put
all the taxes on personal property. All articles of productive
industry cost the keeping of the maker and contriver, but the land
costs nothing for either. It is the natural inheritance of all, for
all time, and all should be protected in their possession, and those
who own all the land should certainly pay all the taxes for keeping
them in possession and their neighbors out of it.
7. Taxing personal property promotes the monopoly of capital (as well
as land) because whenever labor can be bought for a small portion of
its produce the larger portion (or the unpaid labor) is owned by the
capitalist in the name of profit, with which he can starve the
landless workers into worse terms as long as they continue landless in
proportion to their numbers and necessities.
8. Taxing personal property by preventing production and promoting
the monopoly of land and its products makes the means of living the
most precarious, especially for the landless, because there is less
produced in proportion to the wants of the community, and as the land
is high and labor low (from the taxes on industry and competition of
the landless), it is proportionally beyond the means of the cheaply
paid laborer to purchase the land, or even to rent it; and, when the
means of living are the most precarious, the greatest anxiety is
suffered by the landless, and the continuance of that anxiety causes
nervousness, sleeplessness, misery, and insanity, which is transmitted
to the offspring with increased force, and thus is insanity made
hereditary.
9. Taxing personal property promotes intemperance by making labor so
cheap that the labor must toil excessively for a living, thus causing
bodily exhaustion as well as mental anxiety to the landless workers,
and indolence also on the part of those who live on the labor of
others. Those whose bodies are exhausted by excessive toil, and whose
minds are suffering from mental anxiety, crave stimulants to recruit
the body and make the mind forget its care, while those who live in
idleness on others' toil crave stimulants to quicken the circulation
which should he sustained by honest, temperate toil, carrying with it
the moral satisfaction that for all they enjoy no one suffers. Then,
and not till then, will the good be transmitted to the offspring
instead of the evil as now.
10. Taxing personal property by making land dear and labor cheap
promotes prostitution and disease to a fearful extent. Is not woman
more sensitive and weaker physically than man, and when she can get no
just reward for her labor, and frequently no right to labor, need we
wonder that she sells herself legally or illegally for the means of
living? Are not the high price of land and the low price of labor, or
the no right of land and consequently no right of labor, the main
causes? And thus is woman driven by injustice, poverty, and misery
into temptation, and prayed out occasionally in revivals.
Pray folks out of temptation, while driving them in,
Is the usual way to atone for the sin;
To fight the effect, while feeding the cause,
You will find the foundation of moat of our laws.
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11. Taxing personal property is the main cause of rent, interest, and
usury, for rent of land is but interest on the price, so that when the
land is high the rent will be in proportion, and all the wages of the
landless are required for their support; they cannot buy land or build
houses, or have capital for business, but must pay rent or interest
for all. Usury is but interest or rent of money - more than the law
allows - which is sustained by the extremes of rich and poor, caused
by land monopoly and its causes. Do we really want permanent
prosperity and the interest of all to be honest and live on their own
labor instead of speculating on the unpaid labor of others? Do we
desire purity and truth instead of corruption and perjury to prevail?
Then repeal all taxes on industry, and let the monopolists of land,
the source of our living and the rightful inheritance of all, pay
taxes in proportion to the value of what they monopolize, then
poverty, prostitution, and intemperance will soon be among the things
that were.
Letters III and IV criticized the Wisconsin tax laws. In Letter IV he
used a term which has become the accepted definition of the single
tax. It is a pity that Mr. Burgess's definitive phrase, the "ad
valorem land tax", has not also been adopted in place of the
present meaningless title.
Mr. Burgess said:
I would not tax any personal property or product of
industry in any form, but the land alone, according to its market
value, irrespective of all improvements.
In Letter V Mr. Burgess wrote of merchants shifting their stocks of
goods from one State to another to escape taxation; of rich men "swearing
off" their personal property assessments. He doubted if one-half
the personal property in the country were taxed, the conscientious
paying, therefore, not only for themselves but for the unscrupulous.
Returning to the "ad valorem land tax" he said:
If all taxes were on the land, would railroad monopolists want to
steal the land (the birthright of all) by millions of acres while they
deny to the landless and moneyless any land on which to get their "daily
bread," while they hire ministers to open their robbery meetings
in Congress by prayer? Do they not know well that it is only by
keeping the workers landless that they can buy their labor for the
smallest portion of its produce, and if all had what land they needed
their plundered land would be almost valueless for sale, though its
value for production and human sustenance would be undiminished?
If all the taxes were on the land, and none on improvements, then
there would be the greatest encouragement for improvements and
industry; then farmers and merchants would not turn land speculators,
and run all over creation to buy land at ten shillings per acre with
the produce of their toil, but make and enjoy the comforts of life
with their families at home instead of being a curse to the landless
and their families elsewhere; they could then have no fear that their
children would suffer for want of land whenever they might need it.
Were all the taxes on the land and the people's land free to the
landless, then none would be driven into the wilderness to suffer the
changes of climate and want of society, but those who desired could
then settle nearer to their kindred and friends and enjoy the
blessings of friendship, love, and home with much less cost and
inconvenience.
Were all the taxes on the land and the people's land free, then the
hitherto landless could soon build their own homes on their own land
and raise all they needed to consume or exchange, and no longer need
the land, houses, or capital of others; then rent, interest, and even
usury would cease for want of poverty to sustain them, for, the curse,
land monopoly, being removed, the effect would cease with the cause.
Thus would the happiness of mankind be immeasurably increased and
misery be proportionately diminished; then would earth be redeemed
from the giant sin of land robbery, and the Paradise of the present or
future be as far above that of the past as the intelligence of the
philosopher is beyond the ignorance of the child.
In Letter VI Mr. Burgess attacked the tariff, even in the mild form
of tariff for revenue only, as set forth in the report of Howell Cobb,
Secretary of the Treasury, December 6, 1858.
Does not all such taxation go directly to promote the profit of land
monopoly and man monopoly (or slavery)? Does it not take the taxes out
of the pockets of the toiling consumers, and by exempting the land
from so much taxes, enable the landlord to sell or rent his land for
so much more? Do people buy these imported goods in proportion to the
land they hold, or in proportion to the slaves they hold? If not, who
pay the taxes and make landholding and slaveholding profitable?
He then discussed the relation of land monopoly to slavery.
Land monopoly is really the parent of chattel slavery for if no
persons owned the land of others, or more land than they needed to
cultivate by their own labor for their own support, they would not
covet their fellow-men as slaves; but, having obtained the land of
others by legal or illegal robbery, they crave their fellow-men as
slaves to work it for them, and Africa must be robbed, and slaves must
be bred, and men and women and children reduced to bondage to maintain
in luxury and idleness a land-robbing and man-robbing aristocracy, a
nobility forsooth, based on the lasso, the manacles, and the lash: the
gag, the fetter, and the thumbscrew; the whipping-post the chain and
ball, the man-stealer, and the bloodhound.
The law might sanction slavery to all eternity if it was unprofitable
and no law worshipers would be patriotic enough to hold slaves any
more than they would carry white men to Africa for slaves at a loss.
Let us, then, remove this cause or temptation which is the profit by
putting all the taxes on the land, and the effect will assuredly
cease.
Letter VII was devoted to the arguments for free trade. In place of
deriving revenue from taxes on consumption he would do so from taxes
on monopoly, that is, land.
To illustrate the relative merits of the tariff and the land tax, let
us suppose, for example, that Racine exempted all merchants' and
manufacturers' goods from taxes, and all grain, farm produce, etc.,
and all improvements from taxes, and put all the taxes on the land,
and at the same time Milwaukee exempted all land from taxes and put
all the taxes on the farm produce and merchants' and manufacturers'
goods and improvements, where would the mechanics, merchants, and
manufacturers settle? Where would the farmers go to sell their produce
and buy their goods? Would not Eacine grow rapidly while Milwaukee
dwindled? And will not this be true of any city, town, county, State,
or nation?
The land tax, unlike the tariff, would require no extra officers for
assessing and collecting revenue for the general Government, as the
expenses would be defrayed by a percentage on the assessment for State
purposes, which would be transmitted to the general Government in the
best manner.
Think what a saving that would be over the old feudal system of
barbarian despots! No buying Cuba or any other country on the plea of
the benefits of free trade, but free trade without buying the country
for it; no custom houses and officers; no revenue service to diminish
our liberties, increase our expenses, and rob us of our right of free
trade on the plea of protection; no commercial treaties abroad for
special monopolies or vexatious litigation on tariff violations at
home; more producers and fewer destroyers; standing armies and navies
being no longer needed while our commercial motto shall be "Free
Trade with All the World."
In Letter VIII Mr. Burgess spoke of the present tax system as
depopulating the country districts and crowding the cities until these
became "cess-pools of pauperism, prostitution, misery, disease,
and crime."
But the land tax would abolish land monopoly and make the means of
living honestly the most easy and certain for all, and make it
unprofitable to keep land idle; then people would settle near each
other for convenience, comfort, society, and profit, and farmers would
not need to send their children to cities for education. "We
should save millions weekly in cost of local government, in rents,
interest, and usury, besides diminishing pauperism, prostitution,
disease, and crime.
Letter IX continued the comparison of the ad valorem land tax
with the tariff. The former had the advantage not only in defraying
all governmental expense, but in increasing, instead of decreasing,
the productive power of the country to pay it. With cheaper land there
would result cheaper food. Rents would diminish, the saving being
distributed among the manufacturer, the laborer, the merchant, and the
consumer.
For, with all the taxes on the land, it would not pay to keep it
idle, therefore speculation in land would soon cease and be
transferred to untaxed manufactures or labor, which would increase the
demand and raise the wages of labor and reduce the profits of capital
and speculation, and at the same time we should create and sustain the
most permanent and profitable home market for produce and
manufactures. For, when farmers desire to settle near factories for
the benefit of market and exchange, they may be sure the land will
never be high nor manufactures either; because the tax is on the land
and not on the manufactures, which keeps the landlord's rent and the
speculator's profit from the land, and the robber tariff from the
manufactures also.
Letter X amplified the former suggestion of the intimate relation
between slavery and land monopoly.
By the operation of the ad valorem, land tax the poor white
man in the South as well as in the North will possess and cultivate
land now held for speculation. As slave cultivation is always poor and
exhausting, slave farms surrounded by free farms and slave States
surrounded by free States could not commercially compete with either
in their surplus productions, and thus the profit of slaveholding
would be diminished or destroyed.
Were all the taxes on the land, it would not pay to keep it idle; the
result would be cultivation to make it pay, which would cause an
abundance of produce for which manufactures would be made to exchange.
And as the land would be free or cheap, the wages of labor would rise,
because, whenever manufacturing paid less than farming, many more
would farm the land, and thus equalize the wages of labor between
farming and manufacturing.
With cheap free land, with the aid of machinery, we could easily
produce a super-abundance of all that is best for mankind, and have an
abundance of leisure for the cultivation of our physical, mental, and
moral faculties, and thus produce that physical, mental, and moral
elevation which slavery, either wages slavery or chattel, must
inevitably dwarf instead of develop.
Letter XI was in rebuttal to a reply to Mr. Burgess's letters which
had been made in the Racine Advocate by one who signed himself
"S. S."
"S. S." thinks it wrong that the farmers, who, he says, "make
the least cost of government," should pay in proportion to the
land which they own. I think if the farmers do make the least cost of
government it is because they enjoy their right of land and are less
exposed to the destitution, privation, and temptations of the
landless, and this is one of the reasons why I put all taxes on the
land. With the high price of land caused by the labor tax, the
landless and moneyless have no choice but to labor for others if they
can get the work, or beg, steal, or starve. So that it is not the
honest and thrifty, but the lazy and greedy farmers and land
monopolists who own vast quantities of land and cultivate but little,
who make paupers, drunkards, and criminals of the landless which "S.
S." charges on the citizens, and would fain make the citizens
support all the drunkards, paupers, and criminals whom the land
monopolies have made. Why, he might as well buy up and monopolize the
breasts of the mother and then blame the babe for crying for its food,
for the land is to mankind what the breast is to the babe - the source
of subsistence.
I believe that no one has a moral right to land because he has bought
it and paid for it any more than the slaveholder has a moral right to
the man, woman, or child he has bought and paid for, because no one
can have a moral right to sell the land which belongs equally to all,
or to sell the man, woman, and child whose persona, liberty, and labor
belong to themselves.
Mr. Burgess showed that the ad valorem land tax was a "single"
tax, in that it was paid only once, while all other kinds of taxes
were liable to be laid again and again on the same property in its
varying aspects.
"S. S." says the whole system of balances and averages
would be changed, and this to the detriment and pecuniary ruin of the
present and future farmers. Now, the farmers, as well as mechanics,
could change their occupation if they found manufacturing more
profitable, and much more easily than at present, because the land for
the factory would cost probably nothing, and there would be no
inquisitorial, pauperizing "labor tax" on manufactures to
prevent them. So also it would be easier to commence farming because
the land would cost less, and every implement and machine needed for
cultivation would cost less also, and there would be no tax on the
stock of the farmer or manufacturer, or on the improvements of either,
so that the changes in values would be good for farming and
manufacturing, and no "ruin" could result to present or
future farmers or manufacturers from the land tax, but permanent
prosperity to both.
"S. S." says: "If the great burden of the land tax
causes one to sell out, the same cause will prevent others buying."
I contend that the taxes will be much less and consequently less
burdensome, because, the land being priceless, any persons, or, at
least, many, could till the lands for themselves, whom we now keep as
paupers and criminals. This would diminish the cost of government (or
taxes), which will be less burdensome in proportion to the cheapness
of land, and only the land kept idle or badly cultivated would be
obliged to be sold because it would not pay the tax. And none can
rightly keep land idle and make others suffer for their indolence,
else, if one man could buy all the land he might keep all of it idle
except enough to support himself and starve every one else to death.
"S. S." says: "At the low price of produce resulting
from an increase of producers and a decrease of consumers, the farmer
cannot sustain himself and pay his increased and increasing tax."
This is the old fallacy of supposing that cheap land would compel
people to farm while manufacturing paid better.
"S. S." says: "But, supposing the prices remain
relatively the same, what better is a man off by paying a large tax to
a government than paying the same amount in rent to a landlord?"
I reply: Not only would the taxes be diminished by all the cost of the
revenue service, but by that of every pauper and criminal who ceased
to be landless because of the free or cheap land, also by that of
every pauper and criminal who found labor in manufacturing for the
increased supply of the produce of the land, while the very rent to
which "S. S." refers would be saved also by any houses that
were placed on the free or cheap land by their owners, and all
interest and usury would cease also, as all could easily own
their own homes and make all the capital they needed. Then bankers,
brokers, and usurers would soon die out from the universal prosperity
of mankind.
"S. S." complains that the land tax would change the actual
and relative value of land. The actual value is its productive power
which it would not change except by encouraging its use and making its
idleness unprofitable. Its relative or money value might be changed by
the Homestead bill which "S. S." might charge with
destroying the hard-earned property of millions of monopolies by
giving their birthright to millions of mankind. Let us remember that
when we trade in the rights of others in buying risk, and not at the
cost of the innocent or the wronged.
"S. S." says: "No man can have any more right to the
soil another has bought than to the food that another has raised from
it, or to the clothing or other products that he has earned by its
cultivation." "S. S." still fails to distinguish
between the land, which naturally and morally belongs to all, and the
produce of the land, which naturally belongs to the producer. Suppose
one man or many could buy all the land, who has the right to sell it?
Would the buyers have the right to starve all the rest of mankind and
entail the land to their children with the eternal power of starving
all other children? I think not, and therefore think the right of land
is as inalienable as our existence, and that everyone who buys the
land of others ought to lose it, just as the slaveholder who buys a
man, woman, or child ought to lose what he paid for his covetous
villainy.
It is interesting to note in this last opinion the unyielding
opposition to "compensation" which distinguished Patrick
Edward Dove and Henry George.
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