Pixdaus

Possession of title is irrelevant to value.

What would be tricky to calculate would be the "loss" of value to the land after the extraction is completed. I think this is mainly due to a lack of stability in our medium of exchange, money. How can a "loss" be accurately calculated when the supply of currency is never ending? We are creating "false" profits on our balance sheets by substituting funny money for losses.

The rate, or percentage of value, would be based on the type of government and the amount or size of government. In other words, small government, low rate, big government, big rate. You can see the benefits of this, small government needs less revenue and their economies need low taxes and big governments and societies have the opposite needs.

A much related tax would be an extraction tax. All resources, minerals, timber, energy sources, emanate from the earth. In the same sense, they are not the result of any individual's work, resources were here long before us. Their value comes from their abundance or lack of it and their use to everyone. This tax would be in two layers, the basic land fee for the use of the land and the value of the extraction. What would be tricky to calculate would be the "loss" of value to the land after the extraction is completed. I think this is mainly due to a lack of stability in our medium of exchange, money. How can a "loss" be accurately calculated when the supply of currency is never ending? We are creating "false" profits on our balance sheets by substituting funny money for losses.

How this preferred method of taxation would change our world and how it reinforces the values of a "free" society are topics for future articles. Henry George, a contemporary of Ben Franklin's, wrote extensively about this and many of his ideas are as fresh today as they were back then. Taxation should do as little harm as possible and return as much good as possible. We all know the present system doesn't work, the existence of an entire industry built upon evasion of taxes is sufficient evidence. When we feel taxation is an investment in the good of all rather than a burden to all, we will know we are in the right place. Until that time, democracy and freedom are just a dream.