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-todate
  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  improvements? ­
  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  Washington ­
  Street  would  be  better  accommodated  to-day
if  every  alternate  square  were  covered  by  an  up-todate
  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