|Economic rent, if collected by society, is not a tax because there are advantages of equal value in return. The basic human right, therefore, is for all people to have equality of opportunity to apply their labour to land. All people should also have the right of property in the product of their labour and pay tribute or taxes to none. The only charge is for economic rent etc. to cover the cost of public services. When this is paid, land monopoly and land speculation become unprofitable. Land must be put to its best use in order to earn the public charge, thus ensuring full employment opportunities, at full earning capacity, when taxation also is abolished.|
People can only live honestly by applying their labour of hand or brain, directly or indirectly, to the earth, the land of their country, which is the source of all wealth and the field of all human endeavour. Land is provided as a free gift of the Creator, equally to all His people.
People also have a corresponding obligation to pay for the market assessed advantages of their land holding, if any. This value arises from the competition of people for the right of exclusive possession of the piece of land most suited to their requirements. It is generated by the presence and activity of all people in the community and is known as 'economic rent' which is the natural source of public revenue.
The only charge is for economic rent etc. to cover the cost of public services. When this is paid, land monopoly and land speculation become unprofitable. Land must be put to its best use in order to earn the public charge, thus ensuring full employment opportunities, at full earning capacity, when taxation also is abolished.
The following is a short statement of Georgist policy:
This is the essence of simplicity and is based on the principle that value created by individuals belongs to the person who has created it, and that value created by the whole community belongs to all the people and is the natural source of public revenue.
1. The true functions of governments are to maintain peace and justice. This does not include interfering in national or international trade or commerce, or in the private transactions of the people save only as these threaten peace and justice.
(a) The unimproved site rental value of land (economic rent) should be the main source of public revenue, supplemented by:-
(b) Competitively assessed royalties on the limited right of exploitation of non-renewable resources (applicable mainly to mining and other non-renewable resources).
(c) Competitively assessed licences on the right of exploitation of renewable resources when necessary to ensure conservation and regeneration (applicable mainly to forestry and marine resources).
(d) Charges for reticulated services, sufficient to prevent waste.
4. A democratic system of elections by proportional representation (not the Party list system) for all politicians, cabinets, and local government councillors.
Note:- Education, banking and health insurance are not necessary monopolies, - moreover healthy competition is essential to ensure the best results.
In a just and free economy, with full employment opportunities and with full rewards for employment, parents could afford to send their children to the school of their choice.
People have the right to select the doctor and the hospital of their choice. There is no benefit in taxing them to pay for such services.
The Georgist proposals should be phased in over a period but results would be much faster once it is realised there is no unearned income to be made from land monopoly and speculative investment in land.
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