Single Tax in a Nutshell.

Fair Play, Volume I, Issue 23, 2 July 1894, Page 7

Single Tax in a Nutshell.

[By O. K.]

Bent, ground rent, or “ economic rent,” as it is called, t« a tax —a tax which ono sot of individuals aro empowered to levy upon the whole community. Its existenco is a distinct and pernicious contravention of all Democratic principles. It allows persons to usurp tho highest functions of government. Tho theory which proclaims it immoral and unjust lies in tho worldadmitted principle that the State should bo tho only power to inflict taxation—especially indirect taxation —on tho people. When tho Government of a country put 2d. a pound on staroh, 3s. 6d. a pound on tobncco, or a Is. on playing oards —manufactured in the country —these articles become dearer and the consumer pays the tax in an indirect manner. Wo grumblo a bit at it, but we know it is nocessary. And wo fully realize that it s makes the articles cost moro. It is, however, comforting that this was to bo done by Act of Parliament, or by the constitutional authorities. Our blindness, which prevents us seeing that tho landlord or ground-ownor can tax us to a far groator extent in tho same manner, without cithor now Act of Parliament or municipal authority, is somowhat ro markablo. Bent enters into price. That is to say, that the cost of tho production of any article consists of throe component parts: wages of labour, intorest on capital, rent of land on which tho article was manufactured or sold. Consequently any riso inlandvoluos enables the landlord to put moro taxation on tho products of labour by exacting a higher rent. That articlos have become cheaper (though the reward of labour and intelligence has been correspondingly lowered) is duo to progress mode and economies effected in tho art of production. But those benofitg have not affected the worker; their value has boon absorbed in increased rent. The Single Tax theory is that tho privato appropriation of rent is an unnatural way of using a natural tax. It is proposed to gradually shift the incidence of taxation from labour products to rental values. Of tho throe component factors in production, every penny of rent could bo taxed away without making articlos any dearer. Ilowovor, as taxation can only bo levied as required, continual remission of tho tariff on consumable goods must precede any addition to. the “ land value tax.” Governments never raise revenue unless it •is wanted. That is why Single-Taxors aro Froo-traders. When the ground landlord is more generally recognised as a taxgatherer, the practical application of Single-Tax will not bo far distant. , s -