Single Tax Experiment

Horowhenua Chronicle, 16 August 1916, Page 3

Single Tax Experiment

Se.eial yea is age liie lauuu-ip.iJity ot Kaiiiiiiili.il (Canada.; adopted, tile singlo Lax, or, a.- it is called in the United riUlte.-. the lic.lljy George r.ysiein ot taxation. iue tlieoiy this system is tii -1 Lax>s lor ah purposes should be levied on laud alone and no revenue olioiii-d be dei ivudi I rom taxation of personal pu.perly i,i- evi'ii I roni a poll tax. I he alleged benefit of such a system i.s in preventing speculation in real estate. The, taxes on a. vacant lot arc the same as on- an adjoiii'iug lot on which there is a building. This, in theory, would compel owners of vacant property to erect revenue paying buildings. Further, the theory is that business men and manufacturers would be benefited by an exemption from taxes on their stocks of goods audi their plants thus eiH'ou i aging business and manufacturing.

| ICdmonton has just passed through a most active rise in real estate.; values lhavo multiplied rapidly ; money has been je a.sily obtained: millions have been spent "by the ra'iLway companies, the Government and the municipality; the population. has increased from 7000 to 00.000 in ten years. 'During the prosperous period taxes have been paid promptly, for the reason that eity property was saleable and. it "'as profitable to erect buildings. All taxes be--I.n.nr levied on real estate, the assessed value must necessarily be higher than if levied on other property as -well. But when city real estate depreciated greatly in value, taxes began t" become delinquent. and in order to make 1171 for the loss the assessment and rate were both raised. The amount of taxes levied in I fM3 was about £000,000, of which about £200,000 irs delinquent at this time With this amount in arrears. and .witli a penalty adde<l. the city is forced to increase the rate of taxation or afcsosniont, or both. The assessed value of the real estate in Edmonton for the current year i.s about 1(l3.000.000dol, an.fl tbe rate will be. according to tlic city a.ssei-sor, about seventeen millions, at the least. 'I'h" amount to be raised |

> about CnrO.OOO which ad.ded to the {;•_> l) del-iipient from 1013. will liriko a lai-'io sum to lie collected in 1.01 I. The crucial te.st of tliii- system will be Iho or follou-imsx year.

The opponents of the single-tax system assert that its operation ha.s not prevented sperulatio'ii in land : that it has not kept rents low : that it is one of the principal causes of the ]i ip:h rents which at present prevail in that city- ; that it has not made Urine: cheaper for the pcor man and for the small business man. Rut the predominating opinion expressed by the people of Edmonton is that the single-tax system will eventually be vindicated.