Visionary ideas that were stillborn

In 1889, Henry George, an American journalist, published his book Progress and Poverty. It sold in the millions. At one stage he was the “rock star” of economics, and he spoke to sellout crowds worldwide.

His message was that the government should:

Not ever impose sales taxes, VAT or any other turnover tax.

Not impose any type of income tax (such as PAYE).

Not collect any type of company tax (on dividends or capital gains).

Collect all its revenue from the rental value of the land.

The rationale behind all these recommendations was (i) that God made all the land, (ii) it was the birthright of the whole

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community to share in the rents so generated, and (iii) that the rent should not be permanently seized by the first people to arrive at the land.

US politicians were horrified at George’s popularity and its implications. In a very cynical move they persuaded the university economics departments and associated professors to “muddy the waters” and refute Henry George. They succeeded to the extent that George is now only a footnote in history.

We believe the above knowledge should be shared with the whole of SA. The political party that endorses these changes in tax collection will undoubtedly gain a greater following.

If this knowledge is implemented in, say, five years it would accomplish “land expropriation without compensation” and do this without great dislocations to the economy. At the end of this period land would have no resale value and land not being used efficiently would be released for better use.

In the interim period of fiveyears, the government should undertake a complete land audit and auction off government land to black people with an appropriate rental (LVT) to the State.

Andre Quinlan

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