Sunday, October 25, 2009
Land Value Tax gains further support
This idea would revolutionize the tax system of any country: Taxes don't need to be pulled from your income. Henry George argued for a "single tax" on the value of land. Land, to George, was the resource for earning money, or just living: Only beggars could get by without renting a slice of it. Land was not just natural but limited, so it belonged, in the truest sense, to the nation. Other taxes put an undue burden on human activity: Income tax weighed on productivity (wages and profits); a sales tax put a burden on trade; a "property tax," which involves not just land but the structures on top of it, burdened development. In a booming city, land values rise with the tide of human activity, so the power of a government to build subways and schools would rise, too.