Talk about intelligent design! As towns — and cities and societies — grow, there arises a social surplus. Plan A calls for it to be privatized by those who are God's eldest sons. Plan B recognizes that the surplus belongs equally to all of us, because we were created equal. Georgist thought is based on the idea that we're all created equal, and none of us should be able to privatize that which all of us create. We consider the privatization of the commons a serious form of theft that needs to be recognized and corrected.

The opening paragraphs from the prologue to David Brion Davis's Inhuman Bondage: The Rise and Fall of Slavery in the New World are these:

In 1770, on the eve of the American Revolution, African American slavery was legal and almost unquestioned throughout the New World. The ghastly slave trade from Africa was still expanding and for many decades had been shipping five Africans across the Atlantic for every European immigrant to the Americas. An imaginary "hemispheric traveler" would have seen black slaves in every colony from Canada and New England all the way south to Spanish Peru and Chile. In the incomparably rich colonies in the Caribbean, they often constituted population majorities of 90 percent or more. But in 1888, one hundred and eighteen years later, when Brazil finally freed all its slaves, the institution had been outlawed throughout the Western Hemisphere.

This final act of liberation, building on Abraham Lincoln's emancipation achievement in the American Civil War, took place only a century after the creation of the first antislavery societies in human history — initially small groups in such places as Philadelphia, London, Manchester, and New York. The abolition of New World slavery depended in large measure on a major transformation in moral perception — on the emergence of writers, speakers, and reformers, beginning in the mid-eighteenth century, who were willing to condemn an institution that had been sanctioned for thousands of years and who also strove to make human society something more than an endless contest of greed and power. [emphasis mine]

 

Henry George: The Common Sense of Taxation (1881 article)

To consider the nature of property of this kind is again to see a clear distinction. That distinction is not, as the lawyers have it, between movables and immovables, between personal property and real estate. The true distinction is between property which is, and property which is not, the result of human labor; or, to use the terms of political economy, between land and wealth. For, in any precise use of the term, land is not wealth, any more than labor is wealth. Land and labor are the factors of production. Wealth is such result of their union as retains the capacity of ministering to human desire. A lot and the house which stands upon it are alike property, alike have a tangible value, and are alike classed as real estate. But there are between them the most essential differences. The one is the free gift of Nature, the other the result of human exertion; the one exists from generation to generation, while men come and go; the other is constantly tending to decay, and can only be preserved by continual exertion. To the one, the right of exclusive possession, which makes it individual property, can, like the right of property in slaves, be traced to nothing but municipal law; to the other, the right of exclusive property springs clearly from those natural relations which are among the primary perceptions of the human mind. Nor are these mere abstract distinctions. They are distinctions of the first importance in determining what should and what should not be taxed.

For, keeping in mind the fact that all wealth is the result of human exertion, it is clearly seen that, having in view the promotion of the general prosperity, it is the height of absurdity to tax wealth for purposes of revenue while there remains, unexhausted by taxation, any value attaching to land. We may tax land values as much as we please, without in the slightest degree lessening the amount of land, or the capabilities of land, or the inducement to use land. But we cannot tax wealth without lessening the inducement to the production of wealth, and decreasing the amount of wealth. We might take the whole value of land in taxation, so as to make the ownership of land worth nothing, and the land would still remain, and be as useful as before. The effect would be to throw land open to users free of price, and thus to increase its capabilities, which are brought out by increased population. But impose anything like such taxation upon wealth, and the inducement to the production of wealth would be gone. Movable wealth would be hidden or carried off, immovable wealth would be suffered to go to decay, and where was prosperity would soon be the silence of desolation.

And the reason of this difference is clear. The possession of wealth is the inducement to the exertion necessary to the production and maintenance of wealth. Men do not work for the pleasure of working, but to get the things their work will give them. And to tax the things that are produced by exertion is to lessen the inducement to exertion. But over and above the benefit to the possessor, which is the stimulating motive to the production of wealth, there is a benefit to the community, for no matter how selfish he may be, it is utterly impossible for any one to entirely keep to himself the benefit of any desirable thing he may possess. These diffused benefits when localized give value to land, and this may be taxed without in any wise diminishing the incentive to production.

To illustrate: A man builds a fine house or large factory in a poorly improved neighborhood. To tax this building and its adjuncts is to make him pay for his enterprise and expenditure — to take from him part of his natural reward. But the improvement thus made has given new beauty or life to the neighborhood, making it a more desirable place than before for the erection of other houses or factories, and additional value is given to land all about. Now to tax improvements is not only to deprive of his proper reward the man who has made the improvement, but it is to deter others from making similar improvements. But, instead of taxing improvements, to tax these land values is to leave the natural inducement to further improvement in full force, and at the same time to keep down an obstacle to further improvement, which, under the present system, improvement itself tends to raise. For the advance of land values which follows improvement, and even the expectation of improvement, makes further improvement more costly.

See how unjust and short-sighted is this system. Here is a man who, gathering what little capital he can, and taking his family, starts West to find a place where he can make himself a home. He must travel long distances; for, though he will pass plenty of land nobody is using, it is held at prices too high for him. Finally he will go no further, and selects a place where, since the creation of the world, the soil, so far as we know, has never felt a plowshare. But here, too, in nine cases out of ten, he will find the speculator has been ahead of him, for the speculator moves quicker, and has superior means of information to the emigrant. Before he can put this land to the use for which nature intended it, and to which it is for the general good that it should be put, he must make terms with some man who in all probability never saw the land, and never dreamed of using it, and who, it may be, resides in some city, thousands of miles away. In order to get permission to use this land, he must give up a large part of the little capital which is seed-wheat to him, and perhaps in addition mortgage his future labor for years. Still he goes to work: he works himself, and his wife works, and his children work — work like horses, and live in the hardest and dreariest manner. Such a man deserves encouragement, not discouragement; but on him taxation falls with peculiar severity. Almost everything that he has to buy — groceries, clothing, tools — is largely raised in price by a system of tariff taxation which cannot add to the price of the grain or hogs or cattle that he has to sell. And when the assessor comes around he is taxed on the improvements he has made, although these improvements have added not only to the value of surrounding land, but even to the value of land in distant commercial centers. Not merely this, but, as a general rule, his land, irrespective of the improvements, will be assessed at a higher rate than unimproved land around it, on the ground that "productive property" ought to pay more than "unproductive property" — a principle just the reverse of the correct one, for the man who makes land productive adds to the general prosperity, while the man who keeps land unproductive stands in the way of the general prosperity, is but a dog-in-the-manger, who prevents others from using what he will not use himself.

Or, take the case of the railroads. That railroads are a public benefit no one will dispute. We want more railroads, and want them to reduce their fares and freight. Why then should we tax them? for taxes upon railroads deter from railroad building, and compel higher charges. Instead of taxing the railroads, is it not clear that we should rather tax the increased value which they give to land? To tax railroads is to check railroad building, to reduce profits, and compel higher rates; to tax the value they give to land is to increase railroad business and permit lower rates. The elevated railroads, for instance, have opened to the overcrowded population of New York the wide, vacant spaces of the upper part of the island. But this great public benefit is neutralized by the rise in land values. Because these vacant lots can be reached more cheaply and quickly, their owners demand more for them, and so the public gain in one way is offset in another, while the roads lose the business they would get were not building checked by the high prices demanded for lots. The increase of land values, which the elevated roads have caused, is not merely no advantage to them — it is an injury; and it is clearly a public injury. The elevated railroads ought not to be taxed. The more profit they make, with the better conscience can they be asked to still further reduce fares. It is the increased land values which they have created that ought to be taxed, for taxing them will give the public the full benefit of cheap fares.

So with railroads everywhere. And so not alone with railroads, but with all industrial enterprises. So long as we consider that community most prosperous which increases most rapidly in wealth, so long is it the height of absurdity for us to tax wealth in any of its beneficial forms. We should tax what we want to repress, not what we want to encourage. We should tax that which results from the general prosperity, not that which conduces to it. It is the increase of population, the extension of cultivation, the manufacture of goods, the building of houses and ships and railroads, the accumulation of capital, and the growth of commerce that add to the value of land — not the increase in the value of land that induces the increase of population and increase of wealth. It is not that the land of Manhattan Island is now worth hundreds of millions where, in the time of the early Dutch settlers, it was only worth dollars, that there are on it now so many more people, and so much more wealth. It is because of the increase of population and the increase of wealth that the value of the land has so much increased. Increase of land values tends of itself to repel population and prevent improvement. And thus the taxation of land values, unlike taxation of other property, does not tend to prevent the increase of wealth, but rather to stimulate it. It is the taking of the golden egg, not the choking of the goose that lays it.

Every consideration of policy and ethics squares with this conclusion. The tax upon land values is the most economically perfect of all taxes. It does not raise prices; it maybe collected at least cost, and with the utmost ease and certainty; it leaves in full strength all the springs of production; and, above all, it consorts with the truest equality and the highest justice. For, to take for the common purposes of the community that value which results from the growth of the community, and to free industry and enterprise and thrift from burden and restraint, is to leave to each that which he fairly earns, and to assert the first and most comprehensive of equal rights — the equal right of all to the land on which, and from which, all must live.

Thus it is that the scheme of taxation which conduces to the greatest production is also that which conduces to the fairest distribution, and that in the proper adjustment of taxation lies not merely the possibility of enormously increasing the general wealth, but the solution of these pressing social and political problems which spring from unnatural inequality in the distribution of wealth.

"There is," says M. de Laveleye, in concluding that work in which he shows that the first perceptions of mankind have everywhere recognized a most vital distinction between property in land and property which results from labor, — "there is in human affairs one system which is the best; it is not that system which always exists, otherwise why should we desire to change it; but it is that system which should exist for the greatest good of humanity. God knows it, and wills it; man's duty it is to discover and establish it." ... read the whole article

H.G. Brown: Significant Paragraphs from Henry George's Progress & Poverty: 10. Effect of Remedy Upon Wealth Production (in the unabridged P&P: Part IX — Effects of the Remedy: Chapter 1 — Of the effect upon the production of wealth)

The elder Mirabeau, we are told, ranked the proposition of Quesnay, to substitute one single tax on rent (the impôt unique) for all other taxes, as a discovery equal in utility to the invention of writing or the substitution of the use of money for barter.

To whosoever will think over the matter, this saying will appear an evidence of penetration rather than of extravagance. The advantages which would be gained by substituting for the numerous taxes by which the public revenues are now raised, a single tax levied upon the value of land, will appear more and more important the more they are considered. ...

Consider the effect upon the production of wealth.

To abolish the taxation which, acting and reacting, now hampers every wheel of exchange and presses upon every form of industry, would be like removing an immense weight from a powerful spring. Imbued with fresh energy, production would start into new life, and trade would receive a stimulus which would be felt to the remotest arteries. The present method of taxation operates upon exchange like artificial deserts and mountains;

• it costs more to get goods through a custom house than it does to carry them around the world.
• It operates upon energy, and industry, and skill, and thrift, like a fine upon those qualities.
• If I have worked harder and built myself a good house while you have been contented to live in a hovel, the taxgatherer now comes annually to make me pay a penalty for my energy and industry, by taxing me more than you.
• If I have saved while you wasted, I am mulct, while you are exempt.
• If a man build a ship we make him pay for his temerity, as though he had done an injury to the state;
• if a railroad be opened, down comes the tax collector upon it, as though it were a public nuisance;
• if a manufactory be erected we levy upon it an annual sum which would go far toward making a handsome profit.
• We say we want capital, but if any one accumulate it, or bring it among us, we charge him for it as though we were giving him a privilege.
• We punish with a tax the man who covers barren fields with ripening grain,
• we fine him who puts up machinery, and him who drains a swamp.

How heavily these taxes burden production only those realize who have attempted to follow our system of taxation through its ramifications, for, as I have before said, the heaviest part of taxation is that which falls in increased prices.

To abolish these taxes would be to lift the whole enormous weight of taxation from productive industry. The needle of the seamstress and the great manufactory; the cart horse and the locomotive; the fishing boat and the steamship; the farmer's plow and the merchant's stock, would be alike untaxed. All would be free to make or to save, to buy or to sell, unfined by taxes, unannoyed by the taxgatherer. Instead of saying to the producer, as it does now, "The more you add to the general wealth the more shall you be taxed!" the state would say to the producer, "Be as industrious, as thrifty, as enterprising as you choose, you shall have your full reward! You shall not be fined for making two blades of grass grow where one grew before; you shall not be taxed for adding to the aggregate wealth."

And will not the community gain by thus refusing to kill the goose that lays the golden eggs; by thus refraining from muzzling the ox that treadeth out the corn; by thus leaving to industry, and thrift, and skill, their natural reward, full and unimpaired? For there is to the community also a natural reward. The law of society is, each for all, as well as all for each. No one can keep to himself the good he may do, any more than he can keep the bad. Every productive enterprise, besides its return to those who undertake it, yields collateral advantages to others. If a man plant a fruit tree, his gain is that he gathers the fruit in its time and season. But in addition to his gain, there is a gain to the whole community. Others than the owner are benefited by the increased supply of fruit; the birds which it shelters fly far and wide; the rain which it helps to attract falls not alone on his field; and, even to the eye which rests upon it from a distance, it brings a sense of beauty. And so with everything else. The building of a house, a factory, a ship, or a railroad, benefits others besides those who get the direct profits.

Well may the community leave to the individual producer all that prompts him to exertion; well may it let the laborer have the full reward of his labor, and the capitalist the full return of his capital. For the more that labor and capital produce, the greater grows the common wealth in which all may share. And in the value or rent of land is this general gain expressed in a definite and concrete form. Here is a fund which the state may take while leaving to labor and capital their full reward. With increased activity of production this would commensurately increase.

And to shift the burden of taxation from production and exchange to the value or rent of land would not merely be to give new stimulus to the production of wealth; it would be to open new opportunities. For under this system no one would care to hold land unless to use it, and land now withheld from use would everywhere be thrown open to improvement. ... read the whole chapter

H.G. Brown: Significant Paragraphs from Henry George's Progress & Poverty: 11 Effect of Remedy Upon the Sharing of Wealth (in the unabridged P&P: Part IX Effects of the Remedy — Chapter 2: Of the Effect Upon Distribution and Thence Upon Production

But great as they thus appear, the advantages of a transference of all public burdens to a tax upon the value of land cannot be fully appreciated until we consider the effect upon the distribution of wealth.

Tracing out the cause of the unequal distribution of wealth which appears in all civilized countries, with a constant tendency to greater and greater inequality as material progress goes on, we have found it in the fact that, as civilization advances, the ownership of land, now in private hands, gives a greater and greater power of appropriating the wealth produced by labor and capital.

Thus, to relieve labor and capital from all taxation, direct and indirect, and to throw the burden upon rent, would be, as far as it went, to counteract this tendency to inequality, and, if it went so far as to take in taxation the whole of rent, the cause of inequality would be totally destroyed. Rent, instead of causing inequality, as now, would then promote equality. Labor and capital would then receive the whole produce, minus that portion taken by the state in the taxation of land values, which, being applied to public purposes, would be equally distributed in public benefits.

That is to say, the wealth produced in every community would be divided into two portions.

• One part would be distributed in wages and interest between individual producers, according to the part each had taken in the work of production;
• the other part would go to the community as a whole, to be distributed in public benefits to all its members.

In this all would share equally — the weak with the strong, young children and decrepit old men, the maimed, the halt, and the blind, as well as the vigorous. And justly so — for while one part represents the result of individual effort in production, the other represents the increased power with which the community as a whole aids the individual.

Thus, as material progress tends to increase rent, were rent taken by the community for common purposes the very cause which now tends to produce inequality as material progress goes on would then tend to produce greater and greater equality. ... read the whole chapter

Henry George: The Condition of Labor — An Open Letter to Pope Leo XIII in response to Rerum Novarum (1891)

Nor do we hesitate to say that this way of securing the equal right to the bounty of the Creator and the exclusive right to the products of labor is the way intended by God for raising public revenues. For we are not atheists, who deny God; nor semi-atheists, who deny that he has any concern in politics and legislation.

It is true as you say — a salutary truth too often forgotten — that “man is older than the state, and he holds the right of providing for the life of his body prior to the formation of any state.” Yet, as you too perceive, it is also true that the state is in the divinely appointed order. For He who foresaw all things and provided for all things, foresaw and provided that with the increase of population and the development of industry the organization of human society into states or governments would become both expedient and necessary.

No sooner does the state arise than, as we all know, it needs revenues. This need for revenues is small at first, while population is sparse, industry rude and the functions of the state few and simple. But with growth of population and advance of civilization the functions of the state increase and larger and larger revenues are needed.

Now, He that made the world and placed man in it, He that pre-ordained civilization as the means whereby man might rise to higher powers and become more and more conscious of the works of his Creator, must have foreseen this increasing need for state revenues and have made provision for it. That is to say: The increasing need for public revenues with social advance, being a natural, God-ordained need, there must be a right way of raising them — some way that we can truly say is the way intended by God. It is clear that this right way of raising public revenues must accord with the moral law.

Hence:

It must not take from individuals what rightfully belongs to individuals.

It must not give some an advantage over others, as by increasing the prices of what some have to sell and others must buy.

It must not lead men into temptation, by requiring trivial oaths, by making it profitable to lie, to swear falsely, to bribe or to take bribes.

It must not confuse the distinctions of right and wrong, and weaken the sanctions of religion and the state by creating crimes that are not sins, and punishing men for doing what in itself they have an undoubted right to do.

It must not repress industry. It must not check commerce. It must not punish thrift. It must offer no impediment to the largest production and the fairest division of wealth.

Let me ask your Holiness to consider the taxes on the processes and products of industry by which through the civilized world public revenues are collected — the octroi duties that surround Italian cities with barriers; the monstrous customs duties that hamper intercourse between so-called Christian states; the taxes on occupations, on earnings, on investments, on the building of houses, on the cultivation of fields, on industry and thrift in all forms. Can these be the ways God has intended that governments should raise the means they need? Have any of them the characteristics indispensable in any plan we can deem a right one?

All these taxes violate the moral law. They take by force what belongs to the individual alone; they give to the unscrupulous an advantage over the scrupulous; they have the effect, nay are largely intended, to increase the price of what some have to sell and others must buy; they corrupt government; they make oaths a mockery; they shackle commerce; they fine industry and thrift; they lessen the wealth that men might enjoy, and enrich some by impoverishing others.

Yet what most strikingly shows how opposed to Christianity is this system of raising public revenues is its influence on thought.

Christianity teaches us that all men are brethren; that their true interests are harmonious, not antagonistic. It gives us, as the golden rule of life, that we should do to others as we would have others do to us. But out of the system of taxing the products and processes of labor, and out of its effects in increasing the price of what some have to sell and others must buy, has grown the theory of “protection,” which denies this gospel, which holds Christ ignorant of political economy and proclaims laws of national well-being utterly at variance with his teaching. This theory sanctifies national hatreds; it inculcates a universal war of hostile tariffs; it teaches peoples that their prosperity lies in imposing on the productions of other peoples restrictions they do not wish imposed on their own; and instead of the Christian doctrine of man’s brotherhood it makes injury of foreigners a civic virtue.

“By their fruits ye shall know them.” Can anything more clearly show that to tax the products and processes of industry is not the way God intended public revenues to be raised?

But to consider what we propose — the raising of public revenues by a single tax on the value of land irrespective of improvements — is to see that in all respects this does conform to the moral law.

Let me ask your Holiness to keep in mind that the value we propose to tax, the value of land irrespective of improvements, does not come from any exertion of labor or investment of capital on or in it — the values produced in this way being values of improvement which we would exempt. The value of land irrespective of improvement is the value that attaches to land by reason of increasing population and social progress. This is a value that always goes to the owner as owner, and never does and never can go to the user; for if the user be a different person from the owner he must always pay the owner for it in rent or in purchase-money; while if the user be also the owner, it is as owner, not as user, that he receives it, and by selling or renting the land he can, as owner, continue to receive it after he ceases to be a user.

Thus, taxes on land irrespective of improvement cannot lessen the rewards of industry, nor add to prices,* nor in any way take from the individual what belongs to the individual. They can take only the value that attaches to land by the growth of the community, and which therefore belongs to the community as a whole.

* As to this point it may be well to add that all economists are agreed that taxes on land values irrespective of improvement or use — or what in the terminology of political economy is styled rent, a term distinguished from the ordinary use of the word rent by being applied solely to payments for the use of land itself — must be paid by the owner and cannot be shifted by him on the user. To explain in another way the reason given in the text: Price is not determined by the will of the seller or the will of the buyer, but by the equation of demand and supply, and therefore as to things constantly demanded and constantly produced rests at a point determined by the cost of production — whatever tends to increase the cost of bringing fresh quantities of such articles to the consumer increasing price by checking supply, and whatever tends to reduce such cost decreasing price by increasing supply. Thus taxes on wheat or tobacco or cloth add to the price that the consumer must pay, and thus the cheapening in the cost of producing steel which improved processes have made in recent years has greatly reduced the price of steel. But land has no cost of production, since it is created by God, not produced by man. Its price therefore is fixed —

1 (monopoly rent), where land is held in close monopoly, by what the owners can extract from the users under penalty of deprivation and consequently of starvation, and amounts to all that common labor can earn on it beyond what is necessary to life;
2 (economic rent proper), where there is no special monopoly, by what the particular land will yield to common labor over and above what may be had by like expenditure and exertion on land having no special advantage and for which no rent is paid; and,
3 (speculative rent, which is a species of monopoly rent, telling particularly in selling price), by the expectation of future increase of value from social growth and improvement, which expectation causing landowners to withhold land at present prices has the same effect as combination.

Taxes on land values or economic rent can therefore never be shifted by the landowner to the land-user, since they in no wise increase the demand for land or enable landowners to check supply by withholding land from use. Where rent depends on mere monopolization, a case I mention because rent may in this way be demanded for the use of land even before economic or natural rent arises, the taking by taxation of what the landowners were able to extort from labor could not enable them to extort any more, since laborers, if not left enough to live on, will die. So, in the case of economic rent proper, to take from the landowners the premiums they receive, would in no way increase the superiority of their land and the demand for it. While, so far as price is affected by speculative rent, to compel the landowners to pay taxes on the value of land whether they were getting any income from it or not, would make it more difficult for them to withhold land from use; and to tax the full value would not merely destroy the power but the desire to do so.

To take land values for the state, abolishing all taxes on the products of labor, would therefore leave to the laborer the full produce of labor; to the individual all that rightfully belongs to the individual. It would impose no burden on industry, no check on commerce, no punishment on thrift; it would secure the largest production and the fairest distribution of wealth, by leaving men free to produce and to exchange as they please, without any artificial enhancement of prices; and by taking for public purposes a value that cannot be carried off, that cannot be hidden, that of all values is most easily ascertained and most certainly and cheaply collected, it would enormously lessen the number of officials, dispense with oaths, do away with temptations to bribery and evasion, and abolish man-made crimes in themselves innocent.

But, further: That God has intended the state to obtain the revenues it needs by the taxation of land values is shown by the same order and degree of evidence that shows that God has intended the milk of the mother for the nourishment of the babe.

See how close is the analogy. In that primitive condition ere the need for the state arises there are no land values. The products of labor have value, but in the sparsity of population no value as yet attaches to land itself. But as increasing density of population and increasing elaboration of industry necessitate the organization of the state, with its need for revenues, value begins to attach to land. As population still increases and industry grows more elaborate, so the needs for public revenues increase. And at the same time and from the same causes land values increase. The connection is invariable. The value of things produced by labor tends to decline with social development, since the larger scale of production and the improvement of processes tend steadily to reduce their cost. But the value of land on which population centers goes up and up. Take Rome or Paris or London or New York or Melbourne. Consider the enormous value of land in such cities as compared with the value of land in sparsely settled parts of the same countries. To what is this due? Is it not due to the density and activity of the populations of those cities — to the very causes that require great public expenditure for streets, drains, public buildings, and all the many things needed for the health, convenience and safety of such great cities? See how with the growth of such cities the one thing that steadily increases in value is land; how the opening of roads, the building of railways, the making of any public improvement, adds to the value of land. Is it not clear that here is a natural law — that is to say a tendency willed by the Creator? Can it mean anything else than that He who ordained the state with its needs has in the values which attach to land provided the means to meet those needs?

That it does mean this and nothing else is confirmed if we look deeper still, and inquire not merely as to the intent, but as to the purpose of the intent. If we do so we may see in this natural law by which land values increase with the growth of society not only such a perfectly adapted provision for the needs of society as gratifies our intellectual perceptions by showing us the wisdom of the Creator, but a purpose with regard to the individual that gratifies our moral perceptions by opening to us a glimpse of his beneficence.

Consider: Here is a natural law by which as society advances the one thing that increases in value is land — a natural law by virtue of which all growth of population, all advance of the arts, all general improvements of whatever kind, add to a fund that both the commands of justice and the dictates of expediency prompt us to take for the common uses of society. Now, since increase in the fund available for the common uses of society is increase in the gain that goes equally to each member of society, is it not clear that the law by which land values increase with social advance while the value of the products of labor does not increase, tends with the advance of civilization to make the share that goes equally to each member of society more and more important as compared with what goes to him from his individual earnings, and thus to make the advance of civilization lessen relatively the differences that in a ruder social state must exist between the strong and the weak, the fortunate and the unfortunate? Does it not show the purpose of the Creator to be that the advance of man in civilization should be an advance not merely to larger powers but to a greater and greater equality, instead of what we, by our ignoring of his intent, are making it, an advance toward a more and more monstrous inequality? ...

That the value attaching to land with social growth is intended for social needs is shown by the final proof. God is indeed a jealous God in the sense that nothing but injury and disaster can attend the effort of men to do things other than in the way he has intended; in the sense that where the blessings he proffers to men are refused or misused they turn to evils that scourge us. And just as for the mother to withhold the provision that fills her breast with the birth of the child is to endanger physical health, so for society to refuse to take for social uses the provision intended for them is to breed social disease.

For refusal to take for public purposes the increasing values that attach to land with social growth is to necessitate the getting of public revenues by taxes that lessen production, distort distribution and corrupt society. It is to leave some to take what justly belongs to all; it is to forego the only means by which it is possible in an advanced civilization to combine the security of possession that is necessary to improvement with the equality of natural opportunity that is the most important of all natural rights. It is thus at the basis of all social life to set up an unjust inequality between man and man, compelling some to pay others for the privilege of living, for the chance of working, for the advantages of civilization, for the gifts of their God. But it is even more than this. The very robbery that the masses of men thus suffer gives rise in advancing communities to a new robbery. For the value that with the increase of population and social advance attaches to land being suffered to go to individuals who have secured ownership of the land, it prompts to a forestalling of and speculation in land wherever there is any prospect of advancing population or of coming improvement, thus producing an artificial scarcity of the natural elements of life and labor, and a strangulation of production that shows itself in recurring spasms of industrial depression as disastrous to the world as destructive wars. It is this that is driving men from the old countries to the new countries, only to bring there the same curses. It is this that causes our material advance not merely to fail to improve the condition of the mere worker, but to make the condition of large classes positively worse. It is this that in our richest Christian countries is giving us a large population whose lives are harder, more hopeless, more degraded than those of the veriest savages. It is this that leads so many men to think that God is a bungler and is constantly bringing more people into his world than he has made provision for; or that there is no God, and that belief in him is a superstition which the facts of life and the advance of science are dispelling.

The darkness in light, the weakness in strength, the poverty amid wealth, the seething discontent foreboding civil strife, that characterize our civilization of today, are the natural, the inevitable results of our rejection of God’s beneficence, of our ignoring of his intent. Were we on the other hand to follow his clear, simple rule of right, leaving scrupulously to the individual all that individual labor produces, and taking for the community the value that attaches to land by the growth of the community itself, not merely could evil modes of raising public revenues be dispensed with, but all men would be placed on an equal level of opportunity with regard to the bounty of their Creator, on an equal level of opportunity to exert their labor and to enjoy its fruits. And then, without drastic or restrictive measures the forestalling of land would cease. For then the possession of land would mean only security for the permanence of its use, and there would be no object for any one to get land or to keep land except for use; nor would his possession of better land than others had confer any unjust advantage on him, or unjust deprivation on them, since the equivalent of the advantage would be taken by the state for the benefit of all.

The Right Reverend Dr. Thomas Nulty, Bishop of Meath, who sees all this as clearly as we do, in pointing out to the clergy and laity of his diocese* the design of Divine Providence that the rent of land should be taken for the community, says:

I think, therefore, that I may fairly infer, on the strength of authority as well as of reason, that the people are and always must be the real owners of the land of their country. This great social fact appears to me to be of incalculable importance, and it is fortunate, indeed, that on the strictest principles of justice it is not clouded even by a shadow of uncertainty or doubt. There is, moreover, a charm and a peculiar beauty in the clearness with which it reveals the wisdom and the benevolence of the designs of Providence in the admirable provision he has made for the wants and the necessities of that state of social existence of which he is author, and in which the very instincts of nature tell us we are to spend our lives. A vast public property, a great national fund, has been placed under the dominion and at the disposal of the nation to supply itself abundantly with resources necessary to liquidate the expenses of its government, the administration of its laws and the education of its youth, and to enable it to provide for the suitable sustentation and support of its criminal and pauper population. One of the most interesting peculiarities of this property is that its value is never stationary; it is constantly progressive and increasing in a direct ratio to the growth of the population, and the very causes thatincrease and multiply the demands made on it increase proportionately its ability to meet them.
* Letter addressed to the Clergy and Laity of the Diocese of Meath, Ireland, April 2, 1881.

There is, indeed, as Bishop Nulty says, a peculiar beauty in the clearness with which the wisdom and benevolence of Providence are revealed in this great social fact, the provision made for the common needs of society in what economists call the law of rent. Of all the evidence that natural religion gives, it is this that most clearly shows the existence of a beneficent God, and most conclusively silences the doubts that in our days lead so many to materialism.

For in this beautiful provision made by natural law for the social needs of civilization we see that God has intended civilization; that all our discoveries and inventions do not and cannot outrun his forethought, and that steam, electricity and labor-saving appliances only make the great moral laws clearer and more important. In the growth of this great fund, increasing with social advance — a fund that accrues from the growth of the community and belongs therefore to the community — we see not only that there is no need for the taxes that lessen wealth, that engender corruption, that promote inequality and teach men to deny the gospel; but that to take this fund for the purpose for which it was evidently intended would in the highest civilization secure to all the equal enjoyment of God’s bounty, the abundant opportunity to satisfy their wants, and would provide amply for every legitimate need of the state. We see that God in his dealings with men has not been a bungler or a niggard; that he has not brought too many men into the world; that he has not neglected abundantly to supply them; that he has not intended that bitter competition of the masses for a mere animal existence and that monstrous aggregation of wealth which characterize our civilization; but that these evils which lead so many to say there is no God, or yet more impiously to say that they are of God’s ordering, are due to our denial of his moral law. We see that the law of justice, the law of the Golden Rule, is not a mere counsel of perfection, but indeed the law of social life. We see that if we were only to observe it there would be work for all, leisure for all, abundance for all; and that civilization would tend to give to the poorest not only necessities, but all comforts and reasonable luxuries as well. We see that Christ was not a mere dreamer when he told men that if they would seek the kingdom of God and its right-doing they might no more worry about material things than do the lilies of the field about their raiment; but that he was only declaring what political economy in the light of modern discovery shows to be a sober truth.

Your Holiness, even to see this is deep and lasting joy. For it is to see for one’s self that there is a God who lives and reigns, and that be is a God of justice and love — Our Father who art in Heaven. It is to open a rift of sunlight through the clouds of our darker questionings, and to make the faith that trusts where it cannot see a living thing. ...

Your use, in so many passages of your Encyclical, of the inclusive term “property” or “private” property, of which in morals nothing can be either affirmed or denied, makes your meaning, if we take isolated sentences, in many places ambiguous. But reading it as a whole, there can be no doubt of your intention that private property in land shall be understood when you speak merely of private property. With this interpretation, I find that the reasons you urge for private property in land are eight. Let us consider them in order of presentation. You urge:

1. That what is bought with rightful property is rightful property. (RN, paragraph 5) ...
2. That private property in land proceeds from man’s gift of reason. (RN, paragraphs 6-7.) ...
3. That private property in land deprives no one of the use of land. (RN, paragraph 8.) ...
4. That Industry expended on land gives ownership in the land itself. (RN, paragraphs 9-10.) ...
5. That private property in land has the support of the common opinion of mankind, and has conduced to peace and tranquillity, and that it is sanctioned by Divine Law. (RN, paragraph 11.) ...
6. That fathers should provide for their children and that private property in land is necessary to enable them to do so. (RN, paragraphs 14-17.) ...
7. That the private ownership of land stimulates industry, increases wealth, and attaches men to the soil and to their country. (RN, paragraph 51.) ...
8. That the right to possess private property in land is from nature, not from man; that the state has no right to abolish it, and that to take the value of landownership in taxation would be unjust and cruel to the private owner. (RN, paragraph 51.) ...

6. That fathers should provide for their children and that private property in land is necessary to enable them to do so. (14-17.)

With all that your Holiness has to say of the sacredness of the family relation we are in full accord. But how the obligation of the father to the child can justify private property in land we cannot see. You reason that private property in land is necessary to the discharge of the duty of the father, and is therefore requisite and just, because —

It is a most sacred law of nature that a father must provide food and all necessaries for those whom he has begotten; and, similarly, nature dictates that a man’s children, who carry on, as it were, and continue his own personality, should be provided by him with all that is needful to enable them honorably to keep themselves from want and misery in the uncertainties of this mortal life. Now, in no other way can a father effect this except by the ownership of profitable property, which he can transmit to his children by inheritance. (14.)

Thanks to Him who has bound the generations of men together by a provision that brings the tenderest love to greet our entrance into the world and soothes our exit with filial piety, it is both the duty and the joy of the father to care for the child till its powers mature, and afterwards in the natural order it becomes the duty and privilege of the child to be the stay of the parent. This is the natural reason for that relation of marriage, the groundwork of the sweetest, tenderest and purest of human joys, which the Catholic Church has guarded with such unremitting vigilance.

We do, for a few years, need the providence of our fathers after the flesh. But how small, how transient, how narrow is this need, as compared with our constant need for the providence of Him in whom we live, move and have our being — Our Father who art in Heaven! It is to him, “the giver of every good and perfect gift,” and not to our fathers after the flesh, that Christ taught us to pray, “Give us this day our daily bread.” And how true it is that it is through him that the generations of men exist! Let the mean temperature of the earth rise or fall a few degrees, an amount as nothing compared with differences produced in our laboratories, and mankind would disappear as ice disappears under a tropical sun, would fall as the leaves fall at the touch of frost. Or, let for two or three seasons the earth refuse her increase, and how many of our millions would remain alive?

The duty of fathers to transmit to their children profitable property that will enable them to keep themselves from want and misery in the uncertainties of this mortal life! What is not possible cannot be a duty. And how is it possible for fathers to do that? Your Holiness has not considered how mankind really lives from hand to mouth, getting each day its daily bread; how little one generation does or can leave another. It is doubtful if the wealth of the civilized world all told amounts to anything like as much as one year’s labor, while it is certain that if labor were to stop and men had to rely on existing accumulation, it would be only a few days ere in the richest countries pestilence and famine would stalk.

The profitable property your Holiness refers to, is private property in land. Now profitable land, as all economists will agree, is land superior to the land that the ordinary man can get. It is land that will yield an income to the owner as owner, and therefore that will permit the owner to appropriate the products of labor without doing labor, its profitableness to the individual involving the robbery of other individuals. It is therefore possible only for some fathers to leave their children profitable land. What therefore your Holiness practically declares is, that it is the duty of all fathers to struggle to leave their children what only the few peculiarly strong, lucky or unscrupulous can leave; and that, a something that involves the robbery of others — their deprivation of the material gifts of God.

This anti-Christian doctrine has been long in practice throughout the Christian world. What are its results?

Are they not the very evils set forth in your Encyclical? Are they not, so far from enabling men to keep themselves from want and misery in the uncertainties of this mortal life, to condemn the great masses of men to want and misery that the natural conditions of our mortal life do not entail; to want and misery deeper and more wide-spread than exist among heathen savages? Under the régime of private property in land and in the richest countries not five per cent of fathers are able at their death to leave anything substantial to their children, and probably a large majority do not leave enough to bury them! Some few children are left by their fathers richer than it is good for them to be, but the vast majority not only are left nothing by their fathers, but by the system that makes land private property are deprived of the bounty of their Heavenly Father; are compelled to sue others for permission to live and to work, and to toil all their lives for a pittance that often does not enable them to escape starvation and pauperism.

What your Holiness is actually, though of course inadvertently, urging, is that earthly fathers should assume the functions of the Heavenly Father. It is not the business of one generation to provide the succeeding generation “with all that is needful to enable them honorably to keep themselves from want and misery.” That is God’s business. We no more create our children than we create our fathers. It is God who is the Creator of each succeeding generation as fully as of the one that preceded it. And, to recall your own words (7), “Nature [God], therefore, owes to man a storehouse that shall never fail, the daily supply of his daily wants. And this he finds only in the inexhaustible fertility of the earth.” What you are now assuming is, that it is the duty of men to provide for the wants of their children by appropriating this storehouse and depriving other men’s children of the unfailing supply that God has provided for all.

The duty of the father to the child — the duty possible to all fathers! Is it not so to conduct himself, so to nurture and teach it, that it shall come to manhood with a sound body, well-developed mind, habits of virtue, piety and industry, and in a state of society that shall give it and all others free access to the bounty of God, the providence of the All-Father?

In doing this the father would be doing more to secure his children from want and misery than is possible now to the richest of fathers — as much more as the providence of God surpasses that of man. For the justice of God laughs at the efforts of men to circumvent it, and the subtle law that binds humanity together poisons the rich in the sufferings of the poor. Even the few who are able in the general struggle to leave their children wealth that they fondly think will keep them from want and misery in the uncertainties of this mortal life — do they succeed? Does experience show that it is a benefit to a child to place him above his fellows and enable him to think God’s law of labor is not for him? Is not such wealth oftener a curse than a blessing, and does not its expectation often destroy filial love and bring dissensions and heartburnings into families? And how far and how long are even the richest and strongest able to exempt their children from the common lot? Nothing is more certain than that the blood of the masters of the world flows today in lazzaroni and that the descendants of kings and princes tenant slums and workhouses.

But in the state of society we strive for, where the monopoly and waste of God’s bounty would be done away with and the fruits of labor would go to the laborer, it would be within the ability of all to make more than a comfortable living with reasonable labor. And for those who might be crippled or incapacitated, or deprived of their natural protectors and breadwinners, the most ample provision could be made out of that great and increasing fund with which God in his law of rent has provided society — not as a matter of niggardly and degrading alms, but as a matter of right, as the assurance which in a Christian state society owes to all its members.

Thus it is that the duty of the father, the obligation to the child, instead of giving any support to private property in land, utterly condemns it, urging us by the most powerful considerations to abolish it in the simple and efficacious way of the single tax.

This duty of the father, this obligation to children, is not confined to those who have actually children of their own, but rests on all of us who have come to the powers and responsibilities of manhood.

For did not Christ set a little child in the midst of the disciples, saying to them that the angels of such little ones always behold the face of his Father; saying to them that it were better for a man to hang a millstone about his neck and plunge into the uttermost depths of the sea than to injure such a little one?

And what today is the result of private property in land in the richest of so-called Christian countries? Is it not that young people fear to marry; that married people fear to have children; that children are driven out of life from sheer want of proper nourishment and care, or compelled to toil when they ought to be at school or at play; that great numbers of those who attain maturity enter it with under-nourished bodies, overstrained nerves, undeveloped minds — under conditions that foredoom them, not merely to suffering, but to crime; that fit them in advance for the prison and the brothel?

If your Holiness will consider these things we are confident that instead of defending private property in land you will condemn it with anathema! ...

Nor do we seek any “futile and ridiculous equality.” We recognize, with you, that there must always be differences and inequalities. In so far as these are in conformity with the moral law, in so far as they do not violate the command, “Thou shalt not steal,” we are content. We do not seek to better God’s work; we seek only to do his will. The equality we would bring about is not the equality of fortune, but the equality of natural opportunity; the equality that reason and religion alike proclaim — the equality in usufruct of all his children to the bounty of Our Father who art in Heaven.

And in taking for the uses of society what we clearly see is the great fund intended for society in the divine order, we would not levy the slightest tax on the possessors of wealth, no matter how rich they might be. Not only do we deem such taxes a violation of the right of property, but we see that by virtue of beautiful adaptations in the economic laws of the Creator, it is impossible for any one honestly to acquire wealth, without at the same time adding to the wealth of the world. ... read the whole letter

Henry George: Thy Kingdom Come (1889 speech)

“Thy kingdom come!” When Christ taught that prayer He did not mean that humans should idly phrase these words, but that for the coming of that kingdom humanity must work as well as pray! ...

When we consider the achievements of humanity and then look upon the misery that exists today in the very centres of wealth; upon the ignorance, the weakness, the injustice, that characterise our highest civilisation, we may know of a surety that it is not the fault of God; it is the fault of humanity. May we not know that in that very power that God has given to His children here, in that power of rising higher, there is involved — and necessarily involved — the power of falling lower.

“Our Father!” “Our Father!” Whose? Not my Father — that is not the prayer. “Our Father” — not the father of any sect, or any class, but the Father of all humanity. The All- Father, the equal Father, the loving Father. He it is we ask to bring the kingdom. Aye, we ask it with our lips! We call Him “Our Father”, the All, the Universal Father, when we kneel down to pray to Him.

But that He is the All-Father — that He is all people’s Father — we deny by our institutions. The All-Father who made the world, the All-Father who created us in His image, and put us upon the earth to draw subsistence from its bosom; to find in the earth all the materials that satisfy our wants, waiting only to be worked up by our labour! If He is the All-Father, then are not all human beings, all children of the Creator, equally entitled to the use of His bounty? And, yet, our laws say that this God’s earth is not here for the use of all His children, but only for the use of a privileged few!

Then the boy wants to know how the man who owns the brickyard gets his title to the brickyard — whether he made it. “No, he did not make it,” the father replies: “God made it.” The boy asks, “Did God make it for him?” Whereat his father tells him that he must not ask questions such as that, but that anyhow it is all right, and it is all in accordance with God’s law. The boy, who of course was a Sunday school boy, and had been to church, goes off mumbling to himself “that God so loved the world that He gave His only begotten Son to die for all men”; but that He so loved the owner of this brickyard that He gave him the brickyard too.

This has a blasphemous sound. But I do not refer to it lightly. I do not like to speak lightly of sacred subjects. Yet it is well sometimes that we should be fairly shocked into thinking.

Think of what Christianity teaches us; think of the life and death of Him who came to die for us! Think of His teachings, that we are all the equal children of an Almighty Father, who is no respecter of persons, and then think of this legalised injustice — this denial of the most important, most fundamental rights of the children of God, which so many of the very men who teach Christianity uphold; nay, which they blasphemously assert is the design and the intent of the Creator Himself. ...

One cannot look, it seems to me, through nature — whether one looks at the stars through a telescope, or have the microscope reveal to one those worlds that we find in drops of water. Whether one considers the human frame, the adjustments of the animal kingdom, or any department of physical nature, one must see that there has been a contriver and adjuster, that there has been an intent. So strong is that feeling, so natural is it to our minds, that even people who deny the Creative Intelligence are forced, in spite of themselves, to talk of intent; the claws on one animal were intended, we say, to climb with, the fins of another to propel it through the water.

Yet, while in looking through the laws of physical nature, we find intelligence we do not so clearly find beneficence. But in the great social fact that as population increases, and improvements are made, and men progress in civilisation, the one thing that rises everywhere in value is land, and in this we may see a proof of the beneficence of the Creator.

Why, consider what it means! It means that the social laws are adapted to progressive humanity! In a rude state of society where there is no need for common expenditure, there is no value attaching to land. The only value which attaches there is to things produced by labour. But as civilisation goes on, as a division of labour takes place, as people come into centres, so do the common wants increase, and so does the necessity for public revenue arise. And so in that value which attaches to land, not by reason of anything the individual does, but by reason of the growth of the community, is a provision intended — we may safely say intended — to meet that social want.

There is no need for poverty in this world, and in our civilization. There is a provision made by the laws of the Creator which would secure to the helpless all that they require, which would give enough and more than enough for all social purposes. These little children that are dying in our crowded districts for want of room and fresh air, they are the disinherited heirs of a great estate.

Did you ever consider the full meaning of the significant fact that as progress goes on, as population increases and civilization develops, the one thing that ever increases in value is land? Speculators all over the country appreciate that fact. Wherever there is a chance for population coming; wherever railroads meet or a great city seems destined to grow; wherever some new evidence of the bounty of the Creator is discovered, in a rich coal or iron mine, or an oil well, or a gas deposit, there the speculator jumps in, land rises in value, and a great boom takes place, and people find themselves enormously rich without ever having done a single thing to produce wealth.

What is the intent of this natural law of increasing land values? Is there not in it a provision for social needs? That land values grow greater and greater as the community grows and common needs increase: is there not built into this law a manifest provision for social needs — a fund belonging to society as a whole, with which we may take care of those who fall by the wayside — with which we may meet public expenses, and do all the things that an advancing civilization makes more and more necessary for society to do on behalf of its members? ...

Go into Pennsylvania, and there you will see great stretches of land, containing enormous deposits of the finest coal, held by corporations and individuals who are working but little part of it. On these great estates the common American citizens who mine the coal are not allowed even to rent a piece of land, let alone buy it. They can only live in company houses; and they are permitted to stay in them only on condition (and they have to sign a paper to that effect) that they can be evicted at any time on five days’ notice. The companies combine and make coal artificially dear here, and make employment artificially scarce in Pennsylvania.

Now, why should not those miners, who work on it half the time, why shouldn’t they dig down in the earth and get up coal for themselves? Who made that coal? There is only one answer — God made that coal. Whom did He make it for? Surely you would say that God made it for the people that would be one day called into being on this earth. But the laws of Pennsylvania, like the laws of New York, say God made it for this corporation and that individual; and thus a few people are permitted to deprive miners of work and make coal artificially dear. ...  read the whole article

Consider the difference between the value of a building and the value of land. The value of a building, like the value of goods, or of anything properly styled wealth, is produced by individual exertion, and therefore properly belongs to the individual; but the value of land only arises with the growth and improvement of the community, and therefore properly belongs to the community. It is not because of what its owners have done, but because of the presence of the whole great population, that land in New York is worth millions an acre. This value therefore is the proper fund for defraying the common expenses of the whole population; and it must be taken for public use, under penalty of generating land speculation and monopoly which will bring about artificial scarcity where the Creator has provided in abundance for all whom His providence has called into existence.

It is thus a violation of justice to tax labor, or the things produced by labor, and it is also a violation of justice not to tax land values.  ...  read the whole article

Henry George: The Wages of Labor

• It must not take from individuals what rightfully belongs to individuals.
• It must not give some an advantage over others, as by, increasing prices of what some have to sell and others must buy.
• It must not lead men into temptation, by requiring trivial oaths, by making it profitable to lie, to swear falsely, to bribe or to take bribes.
• It must not confuse the distinctions of right and wrong, and weaken the sanctions of Religion and the State, by creating crimes and punishing men for doing what morally they have an undoubted right to do.
• It must not repress industry nor check commerce. It must not punish thrift. It must offer no impediment to the largest production and the fairest division of wealth.

Consider the taxes on the processes and products of industry by which public revenue is collected:

• The monstrous customs duties that hamper intercourse between so-called Christian States;
• the taxes on occupations, on earnings, on investments;
• on the building of houses;
• on the cultivation of fields;
• on industry and thrift in all forms.

In that primitive condition ere the need for the State arises there are no land values. The products of labor have value, but in the sparsity of population no value as yet attaches to land itself. But as increasing density of population and increasing elaboration of industry necessitate the organisation of the State, with its need for revenue, value begins to attach to land. As population still increases and industry grows more elaborate, so the need for public revenue increases; and at the same time, and from the same causes, land values increase. The connection is invariable.

The value of things produced by labor tends to decline with social development, since the larger scale of production and the improvement of process tend steadily to reduce their cost.

But the value of land on which population centres goes up and up. ...

Consider: Here is a natural law by which as society advances the one thing that increases in value is land – a natural law by virtue of which all growth of population, all advance of the arts, all general improvements of whatever kind, add to a fund that both the commands of justice and the dictates of expediency prompt us to take for the common uses of society.

In this beautiful provision for social needs we see that God has intended civilisation; that all our discoveries and inventions do not, and cannot, outrun His forethought; and that steam, electricity, and labor-saving appliances only make the great moral laws clearer and more important.

Clarence Darrow: The Land Belongs To The People (1916)

This earth is a little raft moving in the endless sea of space, and the mass of its human inhabitants are hanging on as best they can. It is as if some raft filled with shipwrecked sailors should be floating on the ocean, and a few of the strongest and most powerful would take all the raft they could get and leave the most of the people, especially the ones who did the work, hanging to the edges by their eyebrows. These men who have taken possession of this raft, this little planet in this endless space, are not even content with taking all there is and leaving the rest barely enough to hold onto, but they think so much of themselves and their brief day that while they live they must make rules and laws and regulations that parcel out the earth for thousands of years after they are dead and, gone, so that their descendants and others of their kind may do in the tenth generation exactly what they are doing today — keeping the earth and all the good things of the earth and compelling the great mass of mankind to toil for them.

Now, the question is, how are you going to get it back? Everybody who thinks knows that private ownership of the land is wrong. If ten thousand men can own America, then one man can own it, and if one man may own it he may take all that the rest produce or he may kill them if he sees fit. It is inconsistent with the spirit of manhood. No person who thinks can doubt but that he was born upon this planet with the same birthright that came to every man born like him. And it is for him to defend that birthright. And the man who will not defend it, whatever the cost, is fitted only to be a slave. The earth belongs to the people — if they can get it — because if you cannot get it, it makes no difference whether you have a right to it or not, and if you can get it, it makes no difference whether you have a right to it or not, you just take it. The earth has been taken from the many by the few. It made no difference that they had no right to it; they took it.

Now, there are some methods of getting access to the earth which are easier than others. The easiest, perhaps, that has been contrived is by means of taxation of the land values and land values alone; and I need only say a little upon that question. One trouble with it which makes it almost impossible to achieve, is that it is so simple and so easy. You cannot get people to do anything that is simple; they want it complex so they can be fooled.

Now the theory of Henry George and of those who really believe in the common ownership of land is that the public should take not alone taxation from the land, but the public should take to itself the whole value of the land that has been created by the public — should take it all. It should be a part of the public wealth, should be used for public improvements, for pensions, and belong to the people who create the wealth — which is a strange doctrine in these strange times. It can be done simply and easily; it can be done by taxation. All the wealth created by the public could be taken back by the public and then poverty would disappear, most of it at least. The method is so simple, and so legal even — sometimes a thing is legal if it is simple — that it is the easiest substantial reform for men to accomplish, and when it is done this great problem of poverty, the problem of the ages, will be almost solved. We may need go farther. ... read the whole article

Martin Luther King, Jr: Where Do We Go From Here? (1967)

... I want to say to you as I move to my conclusion, as we talk about "Where do we go from here," that we honestly face the fact that the Movement must address itself to the question of restructuring the whole of American society. There are forty million poor people here. And one day we must ask the question, "Why are there forty million poor people in America?" And when you begin to ask that question, you are raising questions about the economic system, about a broader distribution of wealth. When you ask that question, you begin to question the capitalistic economy. And I'm simply saying that more and more, we've got to begin to ask questions about the whole society. We are called upon to help the discouraged beggars in life's market place. But one day we must come to see that an edifice which produces beggars needs restructuring. It means that questions must be raised. You see, my friends, when you deal with this,

• you begin to ask the question, "Who owns the oil?"
• You begin to ask the question, "Who owns the iron ore?"
• You begin to ask the question, "Why is it that people have to pay water bills in a world that is two thirds water?"

These are questions that must be asked. ... read the book excerpt and whole speech

Bill Batt: Comment on Parts of the NYS Legislative Tax Study Commission's 1985 study “Who Pays New York Taxes?”

Land value taxation, on the other hand, overcomes all these obstacles. Locations are the beneficiaries of community services whether they are improved or not. As has been forcefully argued by this writer and others elsewhere,32 a tax on land value conforms to all the textbook principles of sound tax theory. Some further considerations are worth reviewing, however, when looking at ground rent as a flow rather than as a “present value” stock. The technical ability to trace changes in the market prices of sites – or as can also be understood, the variable flow of ground rent to those sites – by the application of GIS (geographic information systems) real-time recording of sales transactions invites wholesale changes in the maintenance of cadastral data. The transmittal of sales records as typically received in the offices of local governments for purposes of title registration over to Assessors’ offices allows for the possibility of a running real-time mapping of market values. Given also that GIS algorithms can now calculate the land value proportions reasonably accurately, this means that “landvaluescapes” are easily created in ways analogous to maps that portray other common geographic features. These landvaluescapes reflect the flow of ground rent through local or regional economies, and can also be used to identify the areas of greatest market vitality and enterprise. The flow of economic rent can easily be taxed in ways that overcomes the mistaken notion that it is a stock. Just as income is recognized as a flow of money, rent too can (and should) be understood as such.

The question still begs to be answered, “why tax land?” And what happens when we don’t tax land? Henry George answered this more than a century ago more forcefully and clearly, perhaps, than anyone has since. He recognized full well that the economic surplus not expended by human hands or minds in the production of capital wealth gravitates to land. Particular land sites come to reflect the value of their strategic location for market exchanges by assuming a price for their monopoly use. Regardless whether those who acquire title to such sites use them to the full extent of their potential, the flow of rent to such locations is commensurate with their full capacity. This is why John Stuart Mill more than a century ago observed that, “Landlords grow richer in their sleep without working, risking or economizing. The increase in the value of land, arising as it does from the efforts of an entire community, should belong to the community and not to the individual who might hold title.”33 Absent its recovery by taxation this rent becomes a “free lunch” to opportunistically situated titleholders. When offered for sale, the projected rental value is capitalized in the present value for purposes of attaching a market price and sold as a commodity. Yet simple justice calls for the recovery in taxes what is the community’s creation. Moreover, the failure to recover the land rent connected to sites makes it necessary to tax productive activities in our economy, and this leads to economic and technical inefficiency known as “deadweight loss.”34 It means that the economy performs suboptimally.

Land, and by this Henry George meant any natural factor of production not created by human hands or minds, is ours only to use, not to buy or sell as a commodity. In the equally immortal words of Jefferson a century earlier, “The earth belongs in usufruct to the living; . . . [It is] given as a common stock for men to labor and live on.”35 This passage likely needs a bit of parsing for the modern reader. The word usufruct, understood since Roman times, has almost passed from use today. It means “the right to use the property of another so long as its value is not diminished.”36 Note also that Jefferson regarded the earth as a “common stock;” not allotted to individuals with possessory titles. Only the phrase “to the living” might be subject to challenge by forward-looking environmentalists who, taking an idea from Native American cultures, argue that “we do not inherit the earth from our ancestors; we borrow it from our children.” The presumption that real property titles are acquired legitimately is a claim that does not withstand scrutiny; rather all such titles owe their origin ultimately to force or fraud.37

If we own the land sites that we occupy only in usufruct, and the rent that derives from those sites is due to community enterprise, it is not a large logical leap to argue that the community’s recovery of that rent should be the proper source of taxation. This is the Georgist argument: that the recapture of land rent is the proper – indeed the natural – source of taxation.38 ... read the whole commentary