Progress and Poverty

The abolition of all taxation except for the land tax on wealth production “would be like removing an immense weight from a powerful spring” (432). The land in question is all land, not just farmland. In turn, this measure would stimulate industrial production. In general, “to shift the burden of taxation from production and exchange to the value or rent of land would not merely be to give new stimulus to the production of wealth; it would be to open new opportunities” (434). As a result, not only would land sale prices decrease, but speculation would also end. In the realm of labor, competition would not only involve workers competing for jobs but employers competing for workers. Demand and supply would be in balance. Trade would grow, and so would wealth.

To fully appreciate the impact of land taxation in lieu of other types of taxes, George must examine wealth distribution. Once capital and labor are no longer suffering from the burden of taxation, as it is instead applied to land rent, rent would “promote equality” where it once caused inequality (438). Every wealth-producing community would be able to split its wealth into two parts.