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Rothbard's Single Tax critique.

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  • Harry Pollard
    Fred, Found the Rothbard article on the Single Tax. Here is a larger quote. It s pretty potty, but it is based on the idea of taxing capital value. As this
    Message 1 of 1 , Oct 11, 2008
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      Fred,

       

      Found the Rothbard article on the Single Tax. Here is a larger quote. It's pretty potty, but it is based on the idea of taxing capital value. As this decreases as the land tax increases, soon you are taxing (say) 90% of the decreasing residual.

       

      I recall Australian Georgists talking about this back in the 50's.

       

      Harry

       

      "A 100 percent tax on rent would cause the capital

      value of all land to fall promptly to zero. Since

      owners could not obtain any net rent, the sites

      would become valueless on the market. From that

      point on, sites, in short, would be free. Further,

      since all rent would be siphoned off to the

      government, there would be no incentive for owners

      to charge any rent at all. Rent would be zero as

      well, and rentals would thus be free.

      The first consequence of the single tax, then, is that

      no revenue would accrue from it. Far from

      supplying all the revenue of government, the single

      tax would yield no revenue at all. For if rents are

      zero, a 100 percent tax on rents will also yield

      nothing"

       

      *******************************

      Harry Pollard

      Henry George School of Los Angeles

      Box 655  

      Tujunga  CA 91042

      (818) 352-4141

      *******************************

       

       

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