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Edward Dodson's avatar

In "Agrarian Justice," Paine indicated his general acceptance of the Physiocratic call for the public capture of the rent of land. Turgot, a leading Physiocrat, argued that rent, being societally-created, was an "impot unique" and, if captured, would eliminate the need for actual taxation. This became the message of Henry George in the late 19th century. For the last forty plus years, I have worked alongside others in the U.S. and elsewhere to educate the public on the wisdom of this systemic reform. In practical terms, this battle has been fought at the local level to convince governments and school districts to adopt a two-rate form of real estate taxation that can eventually collect public revenue from the value of land only.

The prospect of eliminating all taxation but that on the potential rental value of land and other natural assets is, sadly, quite low. Therefore, I support a progressive tax on incomes, based on the fact that most income at the highest levels is DERIVED from rent-seeking privileges under law rather than EARNED producing goods or needed services. The structure I propose combines simplification with the capture of rent-derived income. All income from whatever source is reported. Individual incomes up to the national median to be exempt. No other exemptions or deductions permitted. Above the exempt level, an increasing rate of taxation to be applied to higher ranges of income.

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Jo Blow's avatar

Addendum: The $1Million confiscatory inheritance tax on 95% is way too aggressive, Perhaps on estates over say $50M would make more sense. $1M doesn't buy much anymore in populous areas.

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