ments, implements, stocks, etc., will be exempt from

taxation.
2. He will actually pay less taxes than at present, for
a. The vast holdings of idle land in both cities and

rural districts will bear their just share of the taxes.
C. All forms of industry will be stimulated by the exemption

of labor, capital and all improvements on land, from
taxation and by making the natural resources accessible

to all. IV. The single tax on land values has succeeded where it has been The single tried, for

tax has A. It has greatly benefited Vancouver, Victoria, Edmonton and

succeeded

where it other Canadian municipalities.

has been B. It has worked well in New Zealand and Australia.

tried. C. Taxes with some single tax features are being used success

fully by England, Germany, and other European countries.

65. The case against the single tax 1 In opposition to the above claims, numerous arguments have Negative been advanced against the single tax. These negative arguments arguments: have been summarized as follows:

Public revenues should not be raised by a single tax on land values, because I. The present system of taxation is not inherently defective, for

The present A. On the whole, it is in harmony with the great principle of tax system

is not taxation that each individual should contribute to the

inherently support of the government in proportion to his ability to defective,

pay, for

1. Property taxes form the basis of our system of taxation.

2. Property is one of the best evidences of ability to pay.
B. It is a diversified system, and diversification in a taxing sys-

tem is desirable, for
1. If any injustice results from one tax, it is apt to be equalized

or mitigated by the other taxes.
2. A diversified system is a more certain source of revenue,

for

a. If one source fails, others can be drawn upon. 3. It affords greater elasticity.

and its
specific de-
fects can be
remedied
without
overthrow-
ing the
entire
system.

4. It requires some contribution from practically every

citizen. 5. It permits the application of taxes for social or political

purposes. C. The specific defects in the present system can be remedied by

specific reforms without overthrowing the entire system,

for 1. The greatest evil of the present system of state and local

taxation evasion - can be done away with by the classification of property for purposes of taxation and by the taxation of different classes at different rates, for a. If a low rate is placed on intangible and other personal

property, the tax will not be evaded. b. The classified property tax has practically done

away with evasion in the states where it has

been adopted. 2. Injustices in the present system can be remedied by the

extension of progressive inheritance taxes in the states and the adoption of a progressive income tax by the

federal government. 3. The separation of state and local taxation will secure

greater simplicity and effectiveness in the taxing system. II. Viewed solely as a system of taxation, the single tax on land values

is defective, for
A. It is unjust, for'
1. It fails to conform to the canon of taxation that all should

pay taxes in proportion to their ability to pay, for
a. It taxes individuals only in proportion to the value

of the land which they own.
b. It taxes the poor men's land and exempts the rich

men's personal property, mansions, skyscrapers,

and factories. C. It takes no consideration of income, productiveness

of property, or any of the evidences of ability to

pay.
d. It exempts nearly all monopolies and trusts.
2. It discriminates against a certain class in society — the

farmers, for
a. It compels them to bear an undue share of the burdens

of taxation.
3. It discriminates against one of the elements of production,

for
a. Labor and capital should also bear some of the burden

of taxation, for

Defects of the single tax as a system of taxation: injustice,

.

(1) There are socially created values in labor and

capital as well as in land, for
(a) The products of labor owe their value to

the presence of society.
(6) The factory and store would be worthless

if society did not offer a market for their

products.
(c) The business man's profits and the income

of the professional man are socially

created values.
(d) Houses and all other improvements have

the same kind of socially created value

as has land.
4. It is unjust to take the increment of land in taxes and not

reimburse the landowner when there is a decrement in

the value of his land. B. It is difficult of assessment, for

difficulty of 1. It is often impossible to determine land values exclusive assessment,

of improvements, for
a. The value of irrigated, cultivated or fertilized land

cannot be correctly estimated apart from the

improvements. C. It is inelastic, for

and inelas1. It cannot be increased, for

ticity.
a. The purpose of the single tax is to take all of the

rent of land.
2. The selling value and rental value of land fluctuate and

will cause fluctuations in the amounts raised by the tax. D. It is inadequate, for

It is 1. In many poor communities the rent of land is insufficient inadequate,

to meet the expenses of government. E. It will lead to extravagance, for

will lead to 1. In many communities there are enormous land values and extravalarge funds will pour into the public treasury.

gance, 2. The interest of citizens in having government economically

administered will be lessened, for

a. A majority will pay no taxes. F. Its adoption will necessitate the abolition of revenue taxes, and will such as the taxes on opium, liquors, tobacco, adulterated necessitate

the abolifoods, etc., and of protective taxes, such as the tariff.

tion of reveIII. As a scheme for social and economic reform, the single tax on

land values is undesirable, for A. It will result in the confiscation of private property in land,

for

nue taxes.

Defects of the single tax as a scheme of social and economic reform.

1. The appropriation by society of the rent and increase

in value of land will abolish the selling value of land

and constitute the state the universal landlord. B. Confiscation of private property in land is not desirable, for 1. By a process of evolution society has evolved from a

state of common or community ownership of land to

a state of private ownership of land.
2. Private ownership of land is the basis of our civilization.
C. It will result in discouraging the policy of conservation, for

1. A premium will be placed on exploiting natural resources.
2. Timber lands especially will suffer, for
a. The timber will have to be cut to pay the taxes, for
(1) The land yields no income until the timber is

cut.

1

a

The single tax agitation has rendered many valuable services: it has aided in the reform of our taxation system;

66. Services rendered by the single tax agitation The majority of economists are agreed that the single tax, as advocated by Henry George, is too radical and drastic a reform ever to find wide acceptance among the American people. Nevertheless, the single tax agitation has performed a number of valuable services, as Dr. Young points out in the following selection:

Single taxers have found a ready object of criticism in existing tax methods, and they have not come short of their opportunity to point out faults. In this they have performed a most valuable public service. They have occupied a prominent place in the ranks of tax reformers. So far as destructive criticism goes they have frequently been in close agreement with those having other tax ideals. They have persistently laid bare the theoretical and administrative defects of the general property tax; they have shown the injustice of poll taxes; they have set forth the burdensomeness of federal indirect taxation; they have labored assiduously to relax the rigid tax clauses of state constitutions; and they have worked ardently for the juster and more efficient administration of taxes.

Finally, single taxers have directed attention to the social effects of taxation. The principle of using the taxing power as a means of social reform has unquestionably gained a wider acceptance as the result of the single tax agitation.

ment to

Another most important way in which the single tax movement it has aided has exerted influence has been in directing attention to the vital the moveimportance of the conservation of natural resources.

[Single conserve

natural taxers] have actively opposed the efforts which from time to time have

resources, been made to induce Congress to grant away the remainder of the nation's natural resources to those who covet them without requiring a due return. Finally, the American single tax movement has been a powerful and it has

directed force insistently directing attention to the vexed problem of

attention poverty. . . . Through the propaganda of Henry George and his to the followers hundreds of thousands have been led to consider how the problem of

poverty. condition of mankind may be ameliorated. Never before has the pressing importance of social reform been felt as in the last generation. The most vital message of Henry George's life and work was the urgency of social reform. Whatever the fate of the remedy for which he so earnestly contended, one thing is sure. Henry George made it plain that no true civilization can avoid the duty of finding a means to “extirpate poverty” and “to lighten the burdens of those compelled to toil.”

Questions on the foregoing Readings

I. Define single tax.
2. Just what is meant by land value?
3. What is the importance of Henry George in the single tax agitation?
4. What did George point out with regard to the persistence of poverty

in modern life?
5. What, according to George, is the reason for this persistence?
6. What were the six remedies for poverty which George examined

and rejected as inadequate? 7. What remedy did George propose for the eradication of poverty? 8. What arguments did he advance to prove that the private owner

ship of land is unjust? 9. Outline briefly the results which George claimed would follow from an application of his “

remedy.”
10. Outline the case in favor of the single tax.
11. What are the chief arguments against the single tax?
12. What, according to Dr. Young, has been the service rendered

by the single taxers with regard to taxation reform in this
country?