Two Essays On the Taxation of Unearned Incomes ...
Two Essays On the Taxation of Unearned Incomes ...
Harry Gunnison Brown
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Another view is that the rent of land, instead of being, aside from interest on special assessments, alto- gether an unearned income, is partly a compensation for risk and a stimulus to seek out and bring into use desirable locations. In such a view, it might be argued that the real estate dealers who develop a new section of a city or a city suburb for residential purposes risk getting but an inadequate return ; or the capital put into Other Services of City Landowners 65 improvements may be, ...if the new section proves to be wholly unpopular, entirely lost. Must there be a chance for a corresponding gain of the so-called unearned-incre- ment variety in order that the improvements desired shall be made?^^ And if the possibility of surplus gain needs to be kept open to the land speculator, must this gain in- clude all the rental value of the land for all future time ? Is the fact that a given speculator foresaw, earlier than others, the possibility of developing certain sites, and thus hastened the flow of business or population to them, a reason why later generations of business people or of residents to whom the early bringing into use of the land is no advantage, should have to pay him for the privilege of working or living on it?
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