about AnswersAnswers; Chris Tolworthy; how to make a perfect world

Tax is bad rent


Taxation is the money we pay in order to live under a particular government. So taxation is a form of ground rent, we just don't call it that. However, tax is a very bad way to collect the rent, because:

1. Tax is inefficient:
Taxation removes wealth from those who create it. With fewer resources, less wealth can be made. This is true by definition, regardless of what the tax is spent on.

2. Tax corrupts:
Taxation rewards bad government, because no matter how bad the government, the tax payer will pay the bills. But with ground rent, government is only paid the value it creates.

A move to ground rent is simply replacing inefficient, corrupt rent with efficient, moral rent.