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.

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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.