Asked by Toàn Tr?n Khánh on Jun 03, 2024
Verified
Which of the following was not a belief of Henry George and the single-tax movement?
A) Rental income is unfair because landlords do not really earn it from any productive effort.
B) Rental income should be taxed heavily and should be the primary source of revenues for the government.
C) Taxing rental income would adversely affect allocative efficiency because the tax would change how landlords use their land.
D) The single tax on rent would not adversely affect society's productive efficiency.
Henry George
A 19th-century economist known for his belief that people should own the value they produce themselves, but that land and natural resources should belong to all (Georgism).
Allocative Efficiency
A state of resource allocation in which it is impossible to make any one individual better off without making at least one individual worse off.
- Determine the stances and contributions of key economists like Henry George on the subject of land taxation and its influence on economic conditions.
Verified Answer
YO
Yasser OwidahJun 08, 2024
Final Answer :
C
Explanation :
Henry George and the single-tax movement believed that taxing rental income would not adversely affect allocative efficiency because they viewed land as a fixed resource; thus, a tax on land rent would not change the supply of land or how it is used. They argued that since the supply of land is fixed, a tax on land rent would be borne entirely by landlords and would not distort economic decisions, unlike taxes on labor or capital, which can affect how much people work or save.
Learning Objectives
- Determine the stances and contributions of key economists like Henry George on the subject of land taxation and its influence on economic conditions.