The ABC of taxation

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Monograph

Identifikator:: 865635560

URN:: urn:nbn:de:zbw-retromon-96645

Document type:: Monograph

Author:: Sarraut, Maurice

Title:: Le problème de la marine marchande

Place of publication:: Paris

Publisher:: Berger-Levrault & Cie.

Year of publication:: 1901

Scope:: 1 Online-Ressource (XIV, 411 Seiten)

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapitre IV - Les chantiers francais

Collection:: Economics Books

THE SINGLE TAX 159 chaser must also assume. He will then purchase the land not at $4,000, but at $2,000. The tax charge of $ 100 and the mortgage interest charge of $100 respec tively reduce the selling price of land by the same amount, $2,000. The mortgage and the tax together therefore reduce it by $4,000; and the purchaser will buy the land at $2,000, the value of the equity that remains after both mortgage interest and tax have been paid. This $2,000 is the capitalisation of the annual value of the lot after all charges have been met. The gross value is the taxed value. The net value is an untaxed value. It follows from the above too brief analysis that, under the present system, the selling value of land is an untaxed value and land owners who invest to-day are entirely exempt from taxation. As this exemption of the present owner holds true to-day, so it will be true in future of each new purchaser subsequently to the imposition of any new tax. It is in the very nature of things that the burden of a land tax cannot be made to survive a change of ownership. But when we turn to the case of the taxation of houses we find that no parallel appears. Whereas a tax upon the lot could not, in the nature of things, increase its annual rental, or cost for use, a similar tax upon the house is added directly to the annual cost to the user. If a house costing $6,000 to build is subject to a tax of |ioo, this amount must be paid annually in addition to an interest charge of $300. Increasing or decreasing taxation upon the lot has no influence upon its annual cost to the user; while increasing or decreasing the tax upon the house

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