_ i 1-
The Conservative *
actually invested in the construction of
the road and in the purchase from in
dividuals of the successive tracts of lauds
over which they have the right of way.
The other half represents the value of
the right of way itself , the right to use a
long , narrow and continuous strip of
laud for the purpose of traffic. This is
the value , the capitalization of which
constitutes the so-called "watered
stock. " But that this stock has a real
value is evidenced by the dividends paid
on it , or the heavy loans which may
be negotiated upon the property it is
presumed to represent. This value has
its origin in the exclusive private con
trol of the right of way , and to maintain
it , the public is compelled to pay excess
ive freight charges. Under the Single
Tax the great highways would be re
garded as public roads. The most con
servative proposition advocated by
Single Taxers in this regard is that these
highways be maintained by the govern
ment as a public charge , and that the
right to operate them be leased out to
those private corporations which would
give the best service and charge the
least. Thus at least one-half of the ex
pense of transportation would be
abolished , and this would immediately
be realized by the farmer in a better
price for his product and a general fall
in the price of the commodities which
he bought. Thus he would get more
dollars than before , and his dollars
would buy more.
Now , then , let us consider the economic
philosophy of the Single Tax.
Under our system all men outside of
the clutches of the criminal law , are con
ceded to have an equal right to life ,
liberty and the pursuit of happiness.
But the equal right to life carries with
it as a necessary corollary the equal
right to work. But the equal right to
work implies an equal right of all work
ers to the result of their work. When ,
therefore , anyone is compelled to pay to
the owner of land a portion of the pro
duct of his labor , what does he get in re
turn ? The land ? God Almighty made
it ; the landowner does not provide the
land. The person who collects rent for
the use of land apart for improvements
is being paid for no service which he
has rendered as an individual. What
he receives mav be divided as follows :
A. Economic Rent : The Rvalue or
price of land under the Single Tax when
all valuable land is in use , and when
land which is not in use has no value.
B. Monopoly Rent : The value of
land when all land on which any rent
can be paid has become private property ,
and this value is the difference between
the productiveness of any particular
land and the poorest land in use , which
is the best land which can be had for
nothing.
O , Speculative Monopoly Rent : This
is monopoly rent , plus the speculative
amount which the prospective increased
.
to
demand for any particular land may
add. It is the present price of land.
Now , it is clear that private property
in land is a very expensive and clumsy
attempt to maintain the rights of private
and exclusive property in the products
of labor , inasmuch as it compels the
producer to pay many times more than
economic rent which is the fair rental
value of land and , in addition , it
necessitates an elaborate system of the
taxation of the products of labor , so
that the producer , not only pays a double
rent , but a double tax. The economy of
the Single Tax not only justifies , but
will compel its adoption. There is no
escape from its simple formulas.
Because the amount of land is fixed
and determined so that it can neither be
increased nor diminished , the taxation
of the special value which attaches to
particular sites or locations , is not going
to increase or diminish the quantity of
land. But by taxing the value of kind
only , it will be unprofitable to hold land
out of use , so that all available land will
continuously be open to use and occu
pancy. The taxation of labor products ,
on the other hand , makes it more diffi
cult to produce and keep them , and
necessarily adds to their cost. Thus we
find that the taxation of hind values
mokes land cheaper , while the taxation
of labor products mokes them dearer.
It is also a violation of the natural right
of property to tax the products of labor ,
as such. When the producer lias paid to
the representatives of the community
the value of the land which the com
munity has given him the exclusive
privilege of possessing , he lias rendered
his quid pro quo. If the state takes
any more from him , it is taking his
natural property without compensation.
Whatever I have the right to own , I
have the right to claim against the
world ; therefore , even the state is bound
to respect the right of private property
in the products of labor after ground
rent has been paid. Taxes upon the
products of labor , as such , are punitive
and check production ; they are in violation
lation of the natural rights of property ;
they can not be fairly and equitably
assessed or collected. Nearly all students
of tax reform advocate the abolition of
personal property taxes , and , for the
same reason , improvements upon land
should be exempt from taxation.
Legal terms ore not made with exact
reference to economic requirements.
Real estate , in law , includes improve
ments. Personal property , in law ,
would include valuable franchises , or
stocks and bonds , which represent in
terests in values which attach to land.
But the owner of stocks and bonds is
sufficiently taxed when the value of the
privilege is taxed. Thus , if a street rail
road , which is in possession of a franchise
worth twice as much as the capital
actually invested , is taxed the annual
value of the franchise , the stockholders
are taxed thereby.
The Single Tax is more than a mere
fiscal reform. . It is the only practicable
plan by which we can open to all men ,
upon equal terms , access to nature's
great storehouse. The coming genera
tions will not find stretching out before
them the apparently boundless and in
exhaustible west. That west is now
bounded , fenced and pre-empted. But
the Jeffersonian formulas can be applied
in a new form. The same great senti
ment which gave origin to the home
stead and exemption laws ; which put an
end to chattel slavery ; which seeks to
preserve the forest and to cover the
nation with highways and good roads ,
will re-appear in the demand of the sons
of the pioneers , that they , also , be per
mitted to have an interest in the lands
of America , and that this magnifioient
storehouse of nature , which is their
natural heritage , shall not become the
property of mere speculators and
monopolists.
The Single Tax will give true and
practical expression to those great demo
cratic-republican sentiments that taxes
should be so levied as to protect and
encourage industry , diversify labor and
develop the resources of God's store
house. For by exempting labor prod
ucts , improvements and business from
the burden of taxation , a magnificient
impetus will follow in all lines of in
dustry. By striking down the obstacles
that now hamper and check trade , the
greatest possible division and diversifi
cation of labor will follow. And by
shifting the entire burden , that now
rests upon industry and trade , over upon
the value of land , malting it unprofitable
to hold land except for use , a develop
ment of the natural resources will follow
that will cover the planet with happy
homes and a world of plenty.
Such , in brief , is the Single Tax. It
is a sane and healthful proposition. All
great thinkers have recommended it ,
though , perhaps , they have never realized
its full import. It is the spirit of the
Mosaic code , adapted to modern require
ments ; it is the formal application to
the social body , as well as to the in
dividual person , of the divine command ,
"Thou shalt not steal. "
The Single Tax is a proposition which
can be locally demonstrated. It is not
necessary like any attempt to tinker
with the currency to involve the whole
nation in the experiment. If the people
of the state of Colorado shall adopt the
amendment to their constitution , lately
submitted by their legislature , which
permits local option in taxation , then
any county in that state may demon
strate to the world the wisdom of the
Single Tax. Whenever any county
shall have adopted the Single Tax , it
will begin to enjoy a steady and sub
stantive prosperity. Speculators will
not thrive there , but labor and capital
& 7t '
