Tax reform for dummies | Letter

“The association of poverty with progress is the great enigma our times. It is the central fact from which spring industrial,social and political difficulties that perplex the world and which statesmanship, philanthropy and education battle in vain.”

Thus wrote Henry George in Progress and Poverty in 1879.

As wealth increases, poverty increases. The drive from Mercer Island into Seattle provides evidence that things haven’tchanged much.

The central problem is the unequal ownership of land and resources. George examines all the remedies for correcting it. Hetalked about increased efficiency, education, unions, cooperatives, even the nationalization of land. None was satisfactory.

His remedy? “The laws of nature recognize no right but labour. As nature gives only to labor, the exertion of labour inproduction is the only title to exclusive possession.”

People may only profit from land they own by working it, not in any other way. George would take rent out of private handsand put it to public use. If this were done, he writes, there would be no need for any other taxation.

His idea demands consideration by all who are concerned with tax reform. Workers would receive just rewards for energythey expend.

Our taxation system would be based on land/location — not real estate improvements. It would be a single tax.

It would be easily collected and fall directly on the ultimate payers, taking as little as possible.

It would prevent opportunity for abuse, corruption and evasion.

It would be equal — giving nobody an advantage and disadvantage nobody.

Finally, it would prevent elites from exploiting their abilities, thus enabling them to deny the same right to others. No morepreferential tax treatment on unearned income.

This essay is the meat in 600 pages of Progress and Poverty.

Cy Baumgartner

Mercer Island