Posted 1 year ago on Oct. 3, 2011, 6:19 p.m. EST by Silversoul
This content is user submitted and not an official statement
Even progressive income taxes ultimately end up falling on the poor. Sure, the rich may complain that they're being taxed a lot, but the public services that government provides with those taxes end up capitalized in land values. Land values come from what is called "economic rent," which is community-created value. That is, it is a value which is not reducible to any individual contribution. One of the contributors to land values is government expenditure. If government were instead to tax land values, this tax could not be passed on to the poor, since it would not affect the supply of land. It is also more just to tax land rents instead of wages and income, as it is wealth created by the community rather than by any individual.
In addition, the speculative underuse of the most productive land creates an artificial scarcity of capital. This artificial scarcity gives capital a surplus-value called "interest," or "real interest," which is a component of bank interest, along with risk premium and expected rate of inflation. The power of interest puts the owners of capital in a position of power over the workers, who have nothing but their labor-power to sell. Thus, the power of capital is rooted in the power of land.
Land speculation also drives an 18-year cycle which is the largest component of the business cycle, or "boom-bust" cycle, as it is sometimes called. Yes, Wall Street made this latest crisis many orders of magnitude worse than it had to be with derivatives and other debt instruments, but note that underlying all this debt was a land bubble. For all the power we attribute to money in the hands of banks and Wall Street speculators, their power would prove impotent without the power of land.
The Great Tax Clawback Scam: http://www.youtube.com/watch?v=G2xFxS-BIEs
Interview with Fred Harrison: http://www.youtube.com/watch?v=cbrYA62Hheo