Fair Taxes

Bernard Waterhouse’s suggested “net worth tax” (letter, May 20) would not only have a destructive effect on the production of wealth and business development, but would quadruple the “mountain of complex laws, the bureaus, the offices, the agents, etc.” referred to in his letter. We would all be subjected to hordes of IRS agents invading our homes, demanding entrance to appraise our furniture, pictures, stocks, bonds, money supply etc. And the opportunity for corruption would be enormous.

A far more equitable plan is to tax according to benefits received from the government. As a direct result of government expenditures for roads, schools, police protection, fire protection, huge fortunes in the form of windfall increases in land values have been created. This “unearned increment” is wholly due to societal expenditures, yet very little of such values is recouped by society in taxes. Much of it goes into the pockets of foreign and out-of-state corporations who are taking over so much of our common heritage in land and natural resources.

A net worth tax would take us only another step towards destruction of individual initiative and free enterprise. Taxes on land values, excluding homes, buildings and improvements, encourage better use of land, and return to society a portion of the unearned benefits received due to governmental expenditures.

STANLEY SAPIRO

Malibu