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Land monopoly is not the only monopoly, but it is by far the greatest of monopolies

— it is a perpetual monopoly, and it is the mother of all other forms of monopoly.


Winston Churchill was an inspirational statesman, writer, orator and leader who led Britain to victory in the Second World War. He served as Conservative Prime
Minister twice - from 1940 to 1945 (before being defeated in the 1945 general election by the Labour leader Clement Attlee) and from 1951 to 1955.
Churchill 1909,

[Churchill, Winston. Winston Churchill on Land Monopoly. Speech made to the House of Commons,
bibliotek1.dk/english/the-land-question/winston-churchill-on-land-monopoly. Accessed 1 Nov. 2024.]

Land monopoly is not the only monopoly, but it is by far the greatest of monopolies —
it is a perpetual monopoly, and it is the mother of all other forms of monopoly.

Unearned increments in land are not the only form of unearned or undeserved profit, but they are the principal form of unearned
increment, and they are derived from processes which are not merely not beneficial, but positively detrimental to

the general public.


Land, which is a necessity of human existence, which is the original source of all wealth, which is strictly limited in extent, which is fixed in geographical position — land, I say, differs from all other forms of property, and the immemorial customs of nearly every modern state have
placed the tenure, transfer, and obligations of land in a wholly different category from other classes of property.

Nothing is more amusing than to watch the efforts of land monopolists to claim that other forms of property and increment are similar in all respects to land and the unearned increment on land.

They talk of the increased profits of a doctor or lawyer from the growth of population in the town in which they live. They talk of the profits of a railway, from the growing wealth and activity in the districts through which it runs. They talk of the profits from a rise in stocks and even
the profits derived from the sale of works of art.

But see how misleading and false all those analogies are. The windfalls from the sale of a picture — a Van Dyke or a Holbein — may be very considerable. But pictures do not get in anybody’s way. They do not lay a toll on anybody’s labor; they do not touch enterprise and production;
they do not affect the creative processes on which the material well-being of millions depends.

If a rise in stocks confers profits on the fortunate holders far beyond what they expected or indeed deserved, nevertheless that profit was not reaped by withholding from the community the land which it needs; on the contrary, it was reaped by supplying industry with the capital
without which it could not be carried on.

If a railway makes greater profits it is usually because it carries more goods and more passengers.

If a doctor or a lawyer enjoys a better practice, it is because the doctor attends more patients and more exacting patients, and because the lawyer pleads more suits in the courts and more important suits. At every stage the doctor or the lawyer is giving service in return for his fees.

Fancy comparing these healthy processes with the enrichment which comes to the landlord who happens to own a plot of land on the outskirts of a great city, who watches the busy population around him making the city larger, richer, more convenient, more famous every day, and
all the while sits still and does nothing.

Roads are made, streets are made, services are improved, electric light turns night into
day, water is brought from reservoirs a hundred miles off in the mountains — and all
the while the landlord sits still. Every one of those improvements is affected by the
labor and cost of other people and the taxpayers. To not one of those improvements
does the land monopolist, as a land monopolist, contribute, and yet by every one of
them the value of his land is enhanced. He renders no service to the community, he
contributes nothing to the general welfare, he contributes nothing to the process from
which his own enrichment is derived.
While the land is what is called “ripening” for the unearned increment of its owner, the merchant going to his office and the artisan going to his work must
detour or pay a fare to avoid it. The people lose their chance of using the land, the city and state lose the taxes which would have accrued if the natural
development had taken place, and all the while the land monopolist only has to sit still and watch complacently his property multiplying in value, sometimes
many fold, without either effort or contribution on his part!

But let us follow this process a little further. The population of the city grows and grows, the congestion in the poorer quarters becomes acute, rents rise and
thousands of families are crowded into tenements. At last the land becomes ripe for sale — that means that the price is too tempting to be resisted any longer.
And then, and not until then, it is sold by the yard or by the inch at 10 times, or 20 times, or even 50 times its agricultural value.

The greater the population around the land, the greater the injury the public has
sustained by its protracted denial. And, the more inconvenience caused to everybody; the more serious the loss in economic
strength and activity — the larger will be the profit of the landlord when the sale is finally accomplished. In fact, you may say that the unearned increment on the
land is reaped by the land monopolist in exact proportion, not to the service, but to the disservice done. It is monopoly which is the keynote, and where
monopoly prevails, the greater the injury to society the greater the reward to the monopolist. This evil process strikes at every form of industrial activity. The
municipality, wishing for broader streets, better houses, more healthy, decent, scientifically planned towns, is made to pay more to get them in proportion as is
has exerted itself to make past improvements. The more it has improved the town, the more it will have to pay for any land it may now wish to acquire for
further improvements.

The manufacturer proposing to start a new industry, proposing to erect a great factory offering employment to thousands of hands, is made to pay such a price
for his land that the purchase price hangs around the neck of his whole business, hampering his competitive power in every market, clogging him far more than
any foreign tariff in his export competition, and the land price strikes down through the profits of the manufacturer on to the wages of the worker.

Current US tax system is poorly run and easily abused


Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private
practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured
extensively.
Scott 2024,

[Scott, Michelle. “What’s Wrong with the American Tax System.” Investopedia, 16 Aug. 2023,
www.investopedia.com/articles/personal-finance/082415/whats-wrong-american-tax-system.asp.
Accessed 1 Nov. 2024.]

A fundamental question about any law is whether the law and its application are fair and effective. Reports released by the Internal Revenue Service and
analyses published by independent experts indicate that the federal tax system has increasingly failed to meet these requirements.

Taxpayers’ satisfaction and compliance with the tax system depend on their perception that the tax code imposes and authorities collect a level of tax revenue
that's adequate to support the government budget and investments for the future and that all taxpayers are paying their fair share.

E-filed tax returns for most low- and middle-income taxpayers whose earnings and investment income are reported to the IRS on information forms are
effectively audited each year when their returns are matched against these information forms.

Many of these taxpayers suspect that wealthy individuals can reduce or even avoid their tax liability through aggressive strategies that include reporting
questionable deductions and exclusions to offset income from their businesses and investment activities.

Jeff Bezos paid zero income tax in 2007 and again paid zero in
Investigative reporting has shown that

2011. Elon Musk paid no federal income tax in 2018. These two individuals were
among the top three richest people in the world as of Aug. 16, 2023.

Budgetary limitations on the Internal Revenue Service's ability to address


non-compliance have resulted in substantial shortfalls in tax revenue for years. Audit
rates and resulting declines in headcount and enforcement decreased for all individual
returns at all income levels between 2010 and 2019 because of the IRS budget
reductions. The difference between the tax revenue owed to the government and the
amount collected has increased significantly.

between 2010 and 2019 although audit rates for lower-income groups were lower than those for
The audit rate for all taxpayers fell

higher-income taxpayers. The number of audits for returns with $5 to $10 million of income fell

81% during these years. Audits for returns with income over $10 million of income fell
66%. The number of returns filed for the two groups increased by 92% and 84%
respectively over the same period.
U.S. Government Accountability Office. “Tax Compliance: Trends of IRS Audit Rates and Results for Individual Taxpayers by Income.”
The IRS failed to collect $496 billion due in all tax categories between 2014 and 2016. It's
estimated that the IRS failed to collect $600 billion in taxes in 2022. The tax gap will
rise to $7.6 trillion between 2020 and 2029 unless IRS resources are increased. The IRS
complains that the largest portion of that gap is due to underreported taxes, then the underpayment of taxes, and lastly by individuals not filing taxes at all.

Taxpayers who complied with tax laws found it disquieting that IRS budgets and enforcement activities have declined markedly since 2010. The IRS statistics as
well as expert analyses and general media reports revealed that it's conducting fewer audits with the most significant reductions occurring in audits of wealthy
individuals, large corporations, and pass-through businesses and their owners.

The wealthy migrate to low tax areas


Content specialist with a Master of Arts degree in Career & Technical Education. Published content on Business Insider, The Huffington Post, Lifescript, Medium,
EmaxHealth, Technorati and many other publications. Master of Arts degree in Career & Technical Education.
Mancini 2024,

[Mancini, Jeannine. “Where Are the Rich Americans Moving This Year, and What States Are They
Leaving?” Yahoo.com, Yahoo Finance, 24 Jan. 2024,
finance.yahoo.com/news/where-rich-americans-moving-states-180552950.html. Accessed 29 Oct.
2024.]

The migration of high-income earners in the United States has led to significant shifts in the economic landscape. In recent years, particularly during the

there has been a substantial exodus of high earners from major cities, with IRS
pandemic,

data showing that large urban counties lost over $68 billion in taxable income from net
migration between 2020 and 2021. Large coastal cities like Manhattan, New York, San Francisco and Los Angeles experienced
particularly large flights of income.

This trend is reflected in the destinations chosen by these high earners, with many
relocating to states like Florida, Texas and Arizona. Florida leads the nation in net income migration, attracting
high-income earners with its financial landscape and debtor protections. Texas follows with a $10.7 billion net gain, and Arizona boasts a $9.4 billion net gain,
both offering favorable tax structures and thriving business environments.

California, New York and Illinois are seeing significant outflows of


On the other hand,

high-income earners because of high personal income tax rates and cost of living, with
California experiencing a net loss of $343.2 million​​.
The most moved-to states in 2023 included South Carolina, North Carolina, Tennessee, Arizona and Florida, with cities like Tucson, Arizona; Charleston, South
Carolina; Charlotte, North Carolina; Nashville, Tennessee; and Raleigh, North Carolina being particularly attractive because of their low cost of living, reasonable
housing prices and access to outdoor recreational opportunities. South Carolina was the most popular state to move to in 2023, experiencing twice as many
moves into the state as people leaving​​.

High-income earners considering a move can benefit from consulting a local financial adviser. Financial advisers can provide tailored guidance on managing
wealth, optimizing tax benefits and making informed financial decisions in the context of their relocation.

The trend of wealth migration also is becoming more pronounced, with wealth
gravitating toward regions like Florida and Texas with more accommodating tax
policies. The shift is driven by the absence of personal income tax in these states and
by factors like lifestyle preferences and business opportunities. The economic implications of this wealth
migration are profound and far-reaching, affecting various sectors including commercial real estate and job markets.

The migration trends offer a clear view of how economic and fiscal policies at the state level significantly influence wealth distribution across the U.S. The
departure of high-income earners from states like California, New York and Illinois, and their influx into states like Florida, Texas and Arizona, underscores the
impact of state tax policies and cost of living on migration decisions.
An LVT would force those holding unused land to sell their property to someone who
will
Tax attorney and writer specializing in tax law, technology, and policy. Writes a weekly column for Bloomberg Tax called "Technically Speaking."
Leahey 2024,

[Leahey, Andrew. “Land Value Taxes Can Resolve Property Tax Systems’ Inequities.” Bloomberg Tax, 17
Sept. 2024,
news.bloombergtax.com/tax-insights-and-commentary/land-value-taxes-can-resolve-property-tax-syst
ems-inequities. Accessed 1 Nov. 2024.]

A land value tax could break the cycle by shifting tax bases away from improvements and onto the land itself. This would be more equitable and productive,
addressing some shortcomings of traditional property tax policies.

LVTs don’t punish homeowners or developers for construction, renovation, or improvement. Instead, they make underutilized land
more expensive than productive land, encouraging development and deterring land
speculation.

A switch to an LVT in an area with large amounts of undeveloped land or abandoned


properties immediately would cause some property holders to reevaluate the
profitability of leaving property fallow. They would face financial pressure either to
develop the land or sell it to someone who will.

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