22 THE A B C OF TAXATION AN OBJECT LESSON Growth of Land Values vs. Decay of Buildings The Hotel Boylston, S. E. corner of Boylston and Tremont Streets, Boston, known also as the Charles Francis Adams Building, on the site of the present Hotel Touraine. < c p rt' o' P Labour 1. Labour constructs the building as a basis of taxation. 2. Labour pays its taxes, insurance, and repairs. 3. Labour,at the end of twenty-five years,builds a new building in place of the old one which has entirely disappeared; that is, it renews the very basis itself of taxation for another twenty-five years. 1. Land starts with a basis made by other people’s labour. 2. Land apparently pays its taxes at same rate as the building, but pays no insurance or repairs. 3. Land, at end of twenty-five years, has increased its basis threefold through other people’s labour, and its income in proportion. Under the present crooked system, the distribution of untaxed wealth is according to special privilege; its taxation, according to ability (i. e., according to production). Under straight single tax it would be the very reverse. The distribution would be according to ability (i. e., according to production) while taxation would be according to special privilege. It is this right-about-face in taxation to which this illustration is addressed.