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Harmonious Tax Reform

But who among us could lay claim to the sunlight for his own? Sounds ridiculous, right? Yet isn't that the exact thing that is done for land? Try to keep an open mind in what follows.



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What?

In light of the increasing calls for guaranteed income on the Left and calls to reel in 'property' taxes on the Right, it is time to revisit Thomas Paine's plan, at least conceptually, that would likely resolve differences with those on the left and the right, hence harmonious tax reform. The plan harmonizes both Left and Right perspectives reducing unnecessary waste on political fighting and channeling it to productive use.

To understand, we must first understand that NONE of US made the SUNLIGHT (electromagnetic spectrum), the LAND (minerals and surface), or the AIR. Imagine how many of us would challenge someone who had declared he could prevent one from collecting rainwater or sunlight! Yet, we allow this EXACT thing for the land, without which NONE of us can feed ourselves. The result is forced reliance on the system we have created at the expense of our natural rights to the LAND, SUNLIGHT, WATER, etc.

Further, what if one could claim exclusive use of the sunlight to detriment of his or her neighbor, and his claim on the sunlight could earn him a profit, which could eventually be used to lay claim to even more sunlight? Further, if none could claim the sun, yet it were possible to consume it, how quickly would its light be blotted out like the buffalo on the American plains?

I propose that those on the Right make valid points - that one should work for their keep. I also propose that those on the Left are partially right, that everyone deserves and equal opportunity. Where I differ is that equal opportunity does not mean equal result. To demand equal result is unbalanced thinking.

Everyone should have access to the SUN, the AIR, and the LAND to provide for themselves - to be driven by their own hunger to plant a garden! But, life is not so simple - some time ago, we redefined property to include the LAND. Again, imagine if we had declared SUNLIGHT as property that can be owned? Ridiculous, right? Yet, we have been taught our whole lives that the LAND is something you own.

In the event that you think these notions are completely off-base, consider that note worthy founding father Thomas Paine, whose works arguably helped fuel the revolution which allows us to enjoy at least some of our freedoms, wrote.

Consider his quotes as follows:

“The present state of civilization is as odious as it is unjust…The contrast of affluence and wretchedness continually meeting and offending the eye, is like dead and living bodies chained together.”

“Man did not make the earth, and though he had a natural right to occupy it, he had no right to locate as his property in perpetuity any part of it; neither did the Creator of the earth open a land-office, from whence the first title deeds should issue.”

Thus, “Every proprietor, therefore of cultivated lands, owes to the community a ground rent (for I know of no better term to express the idea)... Each individual attaining the age of 21, should receive the sum of fifteen pounds sterling, as compensation in part, for the loss of his or her natural in heritage, by the introduction of land property…and the sum of ten pounds per annum, during life, to every person now living, of the age of fifty years, and to all others as they shall arrive at that age.”


"But the earth in its natural state, as before said, is capable of supporting but a small number of inhabitants compared with what it is capable of doing in a cultivated state. And as it is impossible to separate the improvement made by cultivation from the earth itself, upon which that improvement is made, the idea of landed property arose from that parable connection; but it is nevertheless true, that it is the value of the improvement, only, and not the earth itself, that is individual property.

Every proprietor, therefore, of cultivated lands, owes to the community a ground-rent (for I know of no better term to express the idea) for the land which he holds; and it is from this ground-rent that the fund proposed in this plan is to issue."


Why

A fairness starting point for those entering this world. See another article here for a deeper explanation.

How

From a practical perspective, many states already have an existing property tax system. The proposal is simple - identify a county that would simply remove the taxation on IMPROVEMENTS to the land (which are a result of one's labor)


For a more detailed discussion see this video series. Many taxation systems may employ an exemption system and the land value tax could and has incorporated exemptions on the basis of homesteading or agricultural usage - this may mitigate the negatives of this system.

Examples of Success?

Singapore laid the foundation of the land value tax in its system and appears to have reaped the rewards.

Challenges

All systems have their challenges, here are a couple for the LVT.

  • Some segments of the population may spend their inheritance on frivolous living
  • It may not deal well with derivative financial instruments
  • There may need to be homestead or other exemptions, similar to how 'unimproved' food is exempted in many sales tax systems.

The Game Plan / Next Steps

  • Join the Facebook group if you would like to support efforts to implement at the state, county, or local level, particularly for Texas.
  • Create a bill to adjust Texas property tax system
  • Identify and recruit politicians to sell the idea in a pilot for an independent county, city, or school district.