The theme of taxes is an aspect of society that almost everybody despises. But why? It is probably because it is our lifetime mortgage that takes half of our well earned money to the government. I thought that there was no viable solution to this problem until I read a brochure called The Single Tax, by a journalist called Henry George. According to him, all taxes should be abolished but the one which falls on the value of bare land. As this tax is to be increased, there is no doubt that it will pay all governmental expenditures.
Thanks to the single tax all other taxes and tax gatherers would be dispensed, which present taxes require. This would place in the treasury a much larger portion of what is really taken from us. It would also make the government simple and cheaper. In addition to all this removal of taxes, it would also get rid of all taxes that promote fraud, bribery and above all corruption; which can perfectly lead a man into temptation. This single land tax would increase the production of wealth. Another advantage of this method of taxation is that it that fulfils this principle: if houses are taxed, there will be fewer and poorer houses; if we tax capital, there will be less capital; if we tax savings, there will be less savings. But if we tax land values, there will be no less land. Which means it does not affect any production or growing purposes.
If land values are taxed, it has the effect of making land more easily available by industry, and more difficult for owners of valuable land who have no interest whatsoever to hold it idle for a better price in the future. On the other hand, if there is not enough taxation of land values, it enables men to make huge fortunes by speculating on the increase of land values. This does not add general wealth to the community, it is actually the appropriation of land that could be used to create jobs. If land is distributed unequally, one hand there is an idle and wasteful class because they are too rich, and another idle class because they are too poor. This greatly takes away from men, capital and opportunities that on another situation could be producers. In addition, the unequal distribution of land greatly diminishes production in all sectors.
Since taxes greatly fall on the most part on the poorer agricultural zones, which tends to drive masses of people and wealth into cities, would end thanks to the single tax. As this single tax is increased, it would completely destroy all the land monopoly which is one of the major causes of the overpopulation of cities.
These reasons above, are fundamental reasons to imply this " single tax system " by Henry George. It will most likely not change human nature, but it will certainly bring conditions to make out of the human nature the best of it. It will definently bring an equal distribution of land, undoutedbly solve the labor problems which is growing everyday at a greater rate, and make poverty an unknown thing to us. It will hopefully bring honesty to corrupt governments and remove temptation to lying and law breaking. This solution possible, it exists, it is a reality; but there may be too many political and economical interests to ever implement it.
Esta página fué incorporada el 29/Nov/1999
Diseño, ejecución y promoción: Ing. Eduardo J. Salom