Such considerations add to, and subtract from, rent. Further assessment is required, but the outcome would not significantly modify the conservative estimate that rent is about 50% of total income. This is more than sufficient to cover existing government financial commitments.
Nicolaus Tideman, a professor at Virginia Tech and State University, in the US, estimates that, five years into the financial reform, the average American family would be better off by $6,300.
Land Rent as a Percent of Public Revenue:
(image by data from a speech by Richard Cobden in the House of Commons) DMCA
English tax history
In England a thousand years ago, the State's revenue was exclusively from rent; 500 years ago, the land grabbers got to work. The chart tracks the reduction of rent as a proportion of public revenue. It records how England became a weak, dishonest State.
The State must have revenue to fund its functions. But on what terms would that revenue be raised? Who decides how the revenue is raised, and how much is paid to fund public services? In a strong State, the answers are to be found in the unique character of rent, and the social function performed by the land market.
- Through the land market, the people themselves negotiate the rents they are able to pay for the use of services available at each location.
- By this process of free negotiation, who paid, and how much they paid, would be settled by citizens, not politicians or the servants of the State.