What would our founders tax? The original Tea Party was a revolt against two taxes - a sales tax on tea and a sales tax on printed materials (Stamp Tax). One of the reasons was not the tax itself, but that it was a tax levied by a distant central government. (It was actually levied to defray expenses of the French and Indian War, but that is another story.) We considered ourselves part of the British Empire. The Declaration of Independence even makes reference to dissolving their own form of government, not throwing off a foreign power. Rather, it was a revolt against a centralized government legislating for people distant from it. Every colony had a real estate taxes, and there was no revolt against them. They were considered fair, and were levied locally for local purposes. The Articles of Confederation, approved by the same body that that approved the Constitution, called for even the federal government to be funded by a tax on land value: All charges of war, and all other expenses that shall be incurred for the common defense or general welfare, and allowed by the United States in Congress assembled, shall be defrayed out of a common treasury, which shall be supplied by the several States IN PROPORTION TO THE VALUE OF ALL LAND WITHIN EACH STATE, granted or surveyed for any person, as such land and the buildings and improvements thereon shall be estimated according to such mode as the United States in Congress assembled, shall from time to time direct and appoint. (Article 8) Pennsylvania, particularly, was founded on real estate taxes, on the principle that the land was a commons, and that private landholding carried with it a reciprocal responsibility. Thats why Penn branded it a Commonwealth. Hardly any thing is given us for ourselves, but the public may claim a share with us. But of all we call ours, we are most accountable to God, and the public, for our estates: in this we are but stewards; and to hoard up all to ourselves, is great injustice, as well as ingratitude. If all men were so far tenants to the public that the superfluities of gain and expense were applied to the exigencies thereof, it would put an end to taxes, leave not a beggar, and make the greatest bank for national trade in Europe.” (William Penn, Fruits of Solitude, 221 & 222) And so was Philadelphias first tax a tax on land values: Put to the vote: as many are of the opinion that a public tax upon the land ought to be raised to defray the public charge, say ‘yea’. – Carried in the affirmative, none dissenting.” Philadephia city records, January 30, 1693 Jefferson worried that we would lose our freedoms, not to high taxes, but to a rack-renting landed aristocracy: I asked myself what could be the reason so many should be permitted to beg who are willing to work, in a country [France] where there is a very considerable proportion of uncultivated lands? These lands are undisturbed only for the sake of game. It should seem then that it must be because of the enormous wealth of the proprietors which places them above attention to the increase of their revenues by permitting these lands to be labored. I am conscious that an equal division of property is impracticable, but the consequences of this enormous inequality producing so much misery to the bulk of mankind, legislators cannot invent too many devices for subdividing property, only taking care to let their subdivisions go hand in hand with the natural affections of the human mind. The descent of property of every kind therefore to all the children, or to all the brothers and sisters, or other relations in equal degree, is a politic measure and a practicable one. Another means of silently lessening the inequality of property is to exempt all from taxation below a certain point, and to tax the higher portions or property in geometrical progression as they rise. Whenever there are in any country uncultivated lands and unemployed poor, it is clear that the laws of property have been so far extended as to violate natural right. The earth is given as a common stock for man to labor and live on. If for the encouragement of industry we allow it to be appropriated, we must take care that other employment be provided to those excluded from the appropriation. If we do not, the fundamental right to labor the earth returns to the unemployed. It is too soon yet in our country to say that every man who cannot find employment, but who can find uncultivated land, shall be at liberty to cultivate it, paying a moderate rent. - Property and Natural Right, Letter to James Madison from Fontainebleau, France Franklins comments show that this view was the predominant view of classical liberals, and opposed by a landed aristocracy: I have not lost any of the Principles of Public Oeconomy you once knew me possess’d of; but to get the bad Customs of a Country chang’d, and new ones, though better, introduc’d, it is necessary first to remove the Prejudices of the People, enlighten their Ignorance, and convince them that their Interest will be promoted by the propos’d Changes; and this is not the Work of a Day. Our Legislators are all Landholders; and they are not yet persuaded that all Taxes are finally paid by the Land. - Letter to Alexander Small And so, even today, we face the Prejudices of the People (or at least an organized group of complainers, and we must once again enlighten their Ignorance. 1. Taxes should be as local as possible. 2. They should not be arbitrary. 3. They should not snoop about the private transactions of private citizens, as sales and income taxes do. 4. They should not discourage people from producing and exchanging wealth for themselves. Our founders understood the difference between land and capita. The classical liberals understood it too until Marx conflated them into the means of production. It was always the socialistic faction that wanted income taxes. The classical liberals who founded this country, and the classical progressives (prior to Woodrow Wilson) wanted as few taxes as possible, and wanted them to be on what was given to man by God, not on what he produced for himself. I hope the Tea Party will consider this line of thought, as it provides an important key to ending big government. Dan Sullivan, past Allegheny County chair of the Libertarian Party. Like
Posted on: Sun, 28 Sep 2014 02:12:53 +0000
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