Exemption
As far as this very unpleasant feature of our present economic disorder is concerned, we are involved in no new departure. Exemption has become very fashionable among the well-to-do: we propose, with one logical exception, to make it universal, and apply it to effort, thrift and consumption in any form they appear, henceforward imposing all taxation upon control of value in proportion to the basic economic value controlled. Exemption for the owner of idle capital is obviously a bar to progress: the agents of progress are seduced. But if we reverse our present procedure and offer exemption where it will serve as an inducement to effort, we shall score a gain instead of a loss. In the case of our most important citizen, the average human being who does his day’s work, dreaming only of a bare security against want, exemption would be a simple act of justice. If it is pointed out that under the proposed system the ultimate burden will fall upon him through rents and the other charges based upon the control of land-area, the reply is that we recognize this and safeguard him by a basic government wage calculated upon these very charges. For this section of the community, at least, we can provide room to stand erect, or move freely forward. And, apart from his guaranty of a decent wage from the government, there is going to be a demand for his services which will force the government to recruit far more energetically than ever it did during times of less profitable warfare. Both manufacturer and landlord will be compelled to enter the market for human effort.
The manufacturer, released from all taxation, and ensured a stable unit of value, and contemplating an effective demand for his goods by justly paid workers, is going to throw every unit of his plant into operation and produce to capacity. For the first time consumption, the demand factor of value, will be fully released and in direct proportion to population. We shall probably double the value of effective demand: if we do we shall certainly take steps to go as far as necessary toward doubling the value of supply, thus doubling our flow and con-