.
[Reprinted from an
undated pamphlet, Simple Talks on Taxation, published by the
author]
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...Grace, did you get a receipt for
your contribution to the Red Cross?
... No, I'm
afraid not.
... Well, your check will do as
well.
... But I
didn't pay it with a check. I paid cash.
... Hm. Then we can't deduct it. I'd
hate to ask the Red Cross for a receipt at this late date.
... Well,
since we did pay it, won't the government take your word for it?
... In the eyes of my government, I
am a lying chiseler. They certainly won't take my word for
anything. Another thing, I hope little Grace will be born before
the year-end!
... Little
Grace? You mean Richard, don't you?
... I mean little Grace! Want to
bet? She can save us about a hundred dollars if she'll only arrive
before December 31st!
... Isn't
that ridiculous!
... What particular detail?
... Why, that
our baby will cost One hundred dollars more on one day, than he
would if he was born on the day before!
... The whole thing is utterly
ridiculous - and tragic, too.
... Tragic?
... Yes, tragic. If it wasn't for
the tax system, instead of paying a big rent on this apartment,
you and I would be preparing a nice little home for her, with
plenty of space to move around in.
... How do
you mean?
... Well, I've got our income tax
report far enough along to find that the government is going to
fine me for working, in the sum of Eighteen hundred and eighty
dollars! Of course Grade - -
... Of course
Richard -
... Of course the baby, if she'd
only arrive before New Years, would reduce that by One hundred.
... Are they
going to take as much as that?
... They sure are. So the little
home stays in the dream department.
... But,
after all, that wouldn't buy us a home.
... Let's see if it wouldn't. We'll
call the tax One thousand, for convenience, we pay another Four
hundred in State and City, and Thirty-six hundred a year for rent.
That's Five thousand out of my Twelve. I don't have to tell you
where the remaining Seven goes, what with living costs, insurance
and so forth. Oh, we save some - damn little though.
... But we
have to pay the rent and the taxes, so why talk of the - what was
it - the Five Thousand dollars?
... Sure we do. That's why I'm
making out this income tax report. But suppose that we could keep
the Five and got a nice location and started to build - -
... On Five
thousand dollars! Why you couldn't get a nice location for five
times that!
... Not at present. But, just for
fun, let's suppose we didn't have to buy a location, just lease
one.
... Build on
a lot we didn't own!
... It's done all the time. Only
instead of leasing from someone, we'd pay a land tax, or rent.
... I don't
understand you.
... Well, they're holding the kind
of land we'd want at twelve thousand an acre. Holding it idle and
paying trivial taxes which they can deduct from their income. But
suppose our public officials got some sense and said "Twelve
thousand an acre? - let's see. At five per cent that works out at
Six hundred per acre, a year, plus the tax you're paying on it
now."
... You mean
if a landlord had ten acres he'd have to pay Six thousand dollars
in taxes each year?
... Well, if it was worth One
hundred and twenty thousand dollars, that sounds reasonable. Many
a business man borrows at that rate and is glad of the chance.
... But a
landlord's land might not be paying him anything! A business could
use the money to make more money, as you so often say, but his
land might be idle!
... Properly taxed, it would be
quite expensive to hold it. Yes.
... You mean
he'd have to sell?
... Or use it He'd be wisely prudent
if he sold, though I don't see him getting any Twelve thousand an
acre - fact is, if he held it too long, he'd get next to nothing
for it.
... Why?
... Because everyone else with idle
land would be selling, but fast! If the government taxed it to
it's full value, and I shouldn't say "taxed," I'd rather
say "collected the full rental of the land." There'd be
no point in holding it if the government took its only revenue.
... But
couldn't the landlord raise his rent?
... Nope. The government would just
collect that much more from him. There'd be no point in holding
land unless you were using it.
... Do you
mean he'd have to sell?
... For whatever he could get The
sooner, the better.
... And you
mean we could buy cheaper?
... I mean more than that.
... Well, I'm
getting tired of thinking, but what more do you mean?
... I mean that we could get a home
site without paying out any capital, by just assuming the payment
of the land rental, and use our capital for building.
... And not own the land!
... Sure we'd
own it! As much as anyone owns land right now. And again, if our
government was smart it wouldn't fine us for building.
... Fine us?
... I said "fine,"
I meant "tax." It's the same thing.
... No tax on the house?
... Exactly.
When you put your car at a parking meter, you don't pay more for a
fine expensive car that you do for a "jallopy." So if
you paid the rest of the public for the space yon wanted, why
should it cost you more in taxes, the better house you built
there?
... But with our money, the house
would cost too much anyway.
... Suppose
the land, oil, minerals, fossil fuel, and forests brought the
government all the income it needed, and there was no tax on
building material, contractor's equipment, worker's wages and my
pay, a house could be quite inexpensive.
... I think you're talking nonsense.
... You're
not alone in your thinking, that's why we'll go right on living in
this little apartment.
... Oh, I'm going to bed. I can feel
Richard - -
... You can
feel Gracie. Want to bet?
... Richard.
... All
right, then, Richard.
... I can feel him moving about and
kicking.
... He'd
better save his kicking until he's of taxable age, and as for
moving, I hope he makes his big move before midnight, December
Thirty-first A hundred dollars is a hundred dollars; Goodnight,
Gracie darling. I'm going to try to do as much of this report as I
can, before midnight Lemme see. DEPENDENTS? Gee; That one'll have
to wait 'til New "Years!
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