7 o 
THE A B C OF TAXATION 
per square foot a proper place for this and a hundred 
other similar tombstones? 
The economic, or ground, rent of this estate is not 
(probably) what the present tenant pays for the use 
of the land with its worthless buildings, but is what 
such use would command in connection with an up-to- 
date building. This gross ground rent is at least 5 
per cent on $730,000 (the assessed valuation), 
$36,500, plus present taxes on the land, $2,035, or 
$38,535. Whatever the user receives in return for 
the annual payment of this ground rent or natural 
tax (be it $38,535, or more or less), he receives from 
the city and people of Boston. The owner, as owner, 
to whom this rent is paid, gives him nothing in return. 
Ought not the owner at least to pay the taxes? 
Question. Why do these worthless Washington 
Street buildings withstand the march of improve 
ments? Labour wants to put up better buildings. 
Capital wants to invest in better buildings. Business 
wants to occupy better buildings. 
Answer. The reason is that a building investment 
involves labour and business risk, while land 
investment does not; and further that people are 
not only permitted to hold this land practically 
unimproved, but are actually paid handsomely for 
doing so. 
Query. Is it not a fact that the business of Wash 
ington Street would be better accommodated to-day 
if every alternate square were covered by an up-to- 
date eight or ten story block, with open parks or 
even market gardens in the intervening squares? 
Ground rent is whatever amount a user pays, or 
would be willing to pay, annually, for the use of the