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GROUND  RENT  A  SOCIAL  PRODUCT  23
The  inequality  of  the  present  system  of  taxation  is
apparent  in  the  following  calculation  (based  upon  the
above  assumption  of  2\  per  cent  depreciation)
regarding  the  land  and  buildings  of  Boston  for
the  last  twenty  years,  bearing  in  mind,  that  it  is  not
the  rent,  either  of  buildings  or  land,  that  is  under
consideration,  but  only  the  effect  of  taxes  and  depreciation ­
  upon  the  one,  and  the  opposite  effects  of  taxes
and  appreciation  upon  the  other.
BUILDINGS

The  valuation  of  Boston’s  buildings  in  1887

was  .......
If  time’s  annual  tax  or  depreciation  of  ai  per
cent  (besides  the  city’s  tax  of  I  i  per  cent
which  is  paid  by  the  owner  only  when  he  is
also  the  tenant)  has  been  for  twenty  years

5223,000,000

50  per  cent  or  .

III  ,500,000

I  hen  the  value  of  same  buildings  in  1907  is  only

$111,500,000

LAND

The  valuation  of  Boston’s  land  in  1887  was
Time’s  average  net  annual  appreciation  has
been  (after  paying  city’s  tax  of  ij  per  cent)
for  each  year  5  per  cent  and  for  twenty  years

5322,000,000

more  than  100  per  cent  or  ....

331, 000 ,° 00

And  the  value  of  the  same  land  in  1907  is
Thus  the  increase  in  the  valuation  of  land
in  twenty  years  is  nearly  50  per  cent  more
than  was  the  valuation  of  all  the  buildings
twenty  years  ago.

5653,000,000

Five  per  cent  on  this  twenty  years’  increase  of
$331,000,000  would  he  §16,650,000,  which,  added  to  the
l4>3 0o .ooo  assessed  upon  the  land  in  1887,  would  he
$20,900,000,  as  compared  with  Boston’s  taxes  of
$21,254,000  in  1907.
Those  who  agree  with  John  Stuart  Mill  that  it  would
be  sound  public  policy  and  no  injustice  to  land  owners