THE GEORGIST NEWS

As household names bring up shifting some taxes, it creates an opening for us to insert shifting taxes the geoist way. Some active Georgists have been doing just that – and getting recognition. Also being recognized is the fizzling of the housing bubble. Near term, we can expect more attention to land economics. The info below can help you be ready to respond intelligently.

CONTENTS: (to return here just click the headline)

  1. Al Gore would shift taxes
  2. Cuba Proposal by Relative of Cuba's First President
  3. Canadian campaigns on LVT
  4. Georgist for State Senator In Alabama
  5. Developments in Vietnam
  6. The Free Liberal on rent dividends
  7. Pensacola News Journal on Fairhope
  8. Downtown Fairhope now a National Historic District
  9. Hawaii Reporter quotes HG
10. Housing bubble's air leaking out
11. World Bank cites Hartzok paper
12. Empire State Report
13. A Severance Tax on California Oil?
14. New PowerPoint presentation on Henry George's life and influence
15. CGO 2006 conference
16. HG Teachers meet
17. J.W. Bengough on the wealthandwant website
18. What is African-American Land Ownership?
19. AMI Monetary Conference Speakers Schedule in living color
20. Global Conference on Environmental Taxation
21. Call for papers for International Conference
22. New 2007 Conference developments
23. Letter to Editor
24. Bill Judson
25. Next Month's Georgist News
26. AT THE MARGIN: Quips and Quotes
27. About The Georgist News

1. Al Gore would shift taxes

According to a reporter for Grist News, when Al Gore spoke before Wal-Mart, he called for a radical overhaul of the American tax system: "We should sharply reduce payroll taxes and make it all up in CO2 taxes so the low- and middle-income people don't bear the cost burden of this big transition in energy sources." www.grist.org/news/muck/2006/07/19/gore-walmart/

COMMENT: Taxes on CO2 emissions directly collect rent for one's overuse of the atmosphere's ability to absorb/remediate gasses. Compared to the amount of surface rent, doing this shift might not get tons of rent, but it would reduce a bothersome tax, which is the other half of HG's remedy.

2. Cuba Proposal by Relative of Cuba's First President

Questions about the rights of Cuban exiles have been in the news recently due to speculation about the future of Cuba after the time comes when Castro hands over the reins of government. Tomas Estrada-Palma, the great-grandson of the first president of Cuba, Don Tomas Estrada-Palma, has proposed a solution to the question about property formerly owned by Cuban exiles, such as himself. He proposes that exiles be compensated with government-owned land and that the Cuban government should be funded by a land value tax, supplemented by some revenue from a tax on gambling and other forms of strictly regulated vices, but with no taxes on income, sales, housing, investment, etc. Since posting his article, he has heard from Cuban exiles who are sending his article to others. http://tomasestradapalma4.blogspot.com/

3. Canadian campaigns on LVT

I'm in a by-election right now. Attached is my flyer. We're printing 30,000 of them. It includes LVT. "In a green economy, businesses will increase profitability and international competitiveness while reducing waste, energy use, and pollution, by shifting taxes off of incomes and profits and on to land value, resources, and energy."

4. Georgist for State Senator In Alabama

Government should tax nothing but a governmentally created value. Physiocrats.org shows how to get there, from here. If you visit my website, you may wish to help me.

5. Developments in Vietnam

Nic Tideman has been here. We had several meetings with high-level government officials. Some of them have been very supportive for the last eight months. We also met with many donors, whose economists support the idea of "property taxes" being the best choice to fund local public finance. Nevertheless, they don't trust the Vietnamese (and probably themselves) that it can be accomplished; thus, they dismiss the idea of a full LVT and carry on with their multi-million-dollar poverty-reduction biz. Nic might still be invited to the meeting in HCMC which now has been postponed to October and got a bit out of the hands of Jonathan Pincus at UNDP. We also had a meeting/teaching with students who are eager to learn more about capturing the value of public works. Some of them have links to government agencies and the World Bank. Following are things that work to our benefit:
• A strong will to fight corruption
• The awareness that there is a problem with land and especially with speculation
• Decentralization plans
• Huge need for infrastructure projects and public transport
• A cultural awareness that the land belongs to all
• The state having the task of being a benevolent estate holder
• A recent land law (2003) that grants land titles in the form of land use rights
• An open mind to reform and an open ear to listen to foreign experts

An interview with Nic appeared in an online paper: www2.vietnamnet.vn/service/printversion.vnn?article_id=827302. These are widely read here.

We then met with the CEO of the publishing house. He is willing to push the issue by having more articles appear and organizing an online forum later this year. I am still working on getting some G'ist experts here. I was told this should not be a problem. And there is my dream to have the socially conscience music world to launch a land-is-all-peoples (live-aid) concert here.

6. The Free Liberal* on rent dividends

A Versatile Solution

"Illegal immigration, job outsourcing, trade deficits, budget deficits, workers in poverty, the welfare trap, an insanely complicated tax code... What do all these problems have in common? The answer: They could all be substantially fixed by implementing a citizen's dividend. Everyone is getting money (back) from the government, but they are receiving that money through dozens, if not hundreds, of different mechanisms. The result is a bureaucratic nightmare which makes our businesses less competitive, weakens our moral fiber, and makes life less pleasant generally. Followers of Henry George advocate a citizens' dividend based on ground rents. I personally prefer replacing income and labor taxes with a mix of excise, property (including copyright and corporate value), and possibly sales taxes, combined with a citizens' dividend."

COMMENT: If Carl Milsted realized how much rent is spent on other natural resources and privileges, would he still promote taxes on our efforts?

7. Pensacola News Journal on Fairhope

Baldwin County is growing up fast

"Fairhope founder E.B. Gaston's utopian dream was based on social reformer Henry George's principles; the single-tax colony was founded by 29 Midwesterners on an Eastern Shore bluff known as Stapleton's pasture in 1894. The 'fair hope of success' idea hatched by Gaston and his colonizers in Des Moines today is an oasis, a colony for artists and writers with brick sidewalks and hanging flower baskets."

8. Downtown Fairhope now a National Historic District

The Fairhope Downtown Historic District was placed on the National List of Historic Places in March by the U.S. Department of the Interior. The National Register of Historic Places, which is part of the National Park Service, is the Nation's official list that identifies, evaluates and protects historic and archeological resources. Being on the list of historic places is a tremendous asset to the city and for downtown businesses. It was done so residents and visitors can become more attuned to the history right in their own back yard. The district was listed for its architectural distinctions as a planned downtown community and for its social history as the country's first single tax colony and as a utopian community. The first single tax colonists (so called because of their belief in the economic theories of Henry George, who advocated no taxes other than a single land tax) settled on a high bluff overlooking Mobile Bay in 1894. Legend has it that one of the group said the new colony had 'a fair hope of success', and the community of Fairhope was born. Based on a spirit of cooperative individualism, the Single Tax Colony attracted an eclectic group of industrious, creative and independent thinking people to Fairhope. According to the nomination submission, Fairhope is the earliest, most substantial, and longest enduring place in America that was originally founded by proponents of Henry George, and its governance is still heavily affected by that philosophy.

9. Hawaii Reporter quotes HG

Sprout of the Day

"It is not the business of government to make men virtuous or religious, or to preserve the fool from the consequences of his own folly. Government should be repressive no further than is necessary to secure liberty by protecting the equal rights of each from aggression on the part of others, and the moment governmental prohibitions extend beyond this line, they are in danger of defeating the very ends they are intended to serve." – Henry George

10. Housing bubble's air leaking out

Home sales are down; home prices, which rose 57% over the past five years (and much more than that along the coasts), are now falling in much of the country. The inventory of unsold existing homes is at a 13-year high; builders' confidence is at a 15-year low. In a New York Times profile of his company published last October, Robert Toll, who runs Toll Brothers, the nation's premier builder of McMansions: "Why can't real estate just have a boom like every other industry? Why do we have to have a bubble and then a pop?" The majority opinion seems to be that we're looking at a cooling market, not a bust. But this complacency looks increasingly like denial. Prices reached a level beyond what even optimistic potential buyers were willing to pay, especially after interest rates rose a bit. (They're still low by historical standards.) As demand fell short of supply, double-digit price increases declined into the low single digits, then went negative everywhere except in the South. And with prices falling in many areas, the speculative demand for houses has gone into reverse, as people try to get out with a profit while they still can. There's now a rapidly growing glut of unsold houses. This is a recipe for a major bust, not a soft landing. Moreover, it could be both a deep and a prolonged bust. Since 2000, much of the nation has experienced a rise in home prices comparable to the boom in Southern California during the late 1980's. After that bubble popped, Los Angeles house prices began a slow, grinding deflation, eventually falling 20 percent (34 percent after adjusting for inflation). Prices didn't begin a sustained recovery until 1996, more than six years after the downturn began. As far as I know, Nouriel Roubini of Roubini Global Economics is the only well-known economist flatly predicting a housing-led recession in the coming year. Richard Fisher, the president of the Federal Reserve Bank of Dallas, dismissed "Eeyores in the analytical community" who worry about a possible recession. Yet housing has been the main engine of U.S. economic growth over the past three years, and with that engine now going into reverse, it's hard to see how we can avoid a serious slowdown.

11. World Bank cites Hartzok paper

A major World Bank paper on resource rent funds published June 2006 cited one of my papers in its bibliography. The impressively detailed and substantive 302-page report titled Experiences with Oil Funds: Institutional and Financial Aspects, was written by Robert Bacon and Silvana Tordo and published under ESMAP, the Energy Sector Management Assistance Program of The World Bank. The paper they cited was "Citizens Dividends and Oil Resource Rents: A Focus on Alaska, Norway and Nigeria", the paper I delivered in the U.S. Basic Income Guarantee Network (USBIG) track of the Eastern Economic Association 30th Annual Conference, held February 20 - 22, 2004 in Washington, DC. Jeffrey Smith is to be credited with getting other Georgists involved in USBIG and the EEA.

12. Empire State Report

The June issue of Empire State Report, the leading magazine on New York State politics, carried a two-page cover article by Bill Batt. The article ripped a report by the Office of the New York State Controller on the real property tax from beginning to end. (It was also printed in the May-June issue of Groundswell.) Bill's shredding may well have a decisive impact on the state legislature. The State's highest court has ruled that downstate school districts are due an additional $4 billion in state aid, a figure that will devastate the already destitute upstate schools. Bill's article shows how a state tax on land values could solve the problem by strengthening school districts and municipalities statewide. The Center for the Study of Economics is creating a website, www.newyorklandvaluetax.org, to show how the shift to LVT would affect real property titleholders (similar to the one for Maryland at www.marylandlandtax.org). If you are a New Yorker, or know any, visit or send them to the site to discover a workable solution that will save most people money.

13. A Severance Tax on California Oil?

Dear California friends,

Come November, we will be voting on a Severance Tax initiative, Prop. 87.  I hope the attached (begun below) will give you some background info to help evaluate the issue. In any case, please note my new edress.

"California has long been and remains a major oil-extracting state. It is the largest gasoline consumer by far, and pays the highest prices. Its fields were yielding up hydrocarbons not long ago when oil was at $10/bbl or less, and natural gas was a drug on the market. There is much economic rent there. And yet, California is the only state, major or minor, with no severance tax. This November, voters will turn thumbs up or down on Prop. 87, a severance tax measure. Besides the usual suspects, its backers include some leading venture capitalists from Silicon Valley, with interests in greentech. Two of the leading contributors are Vinod Khosla (Sun Microsystems) and John Doerr (Kleiner Perkins Caulfield and Byer)."

COMMENT: Intrigued? For the rest, please contact the author.

14. New PowerPoint presentation on Henry George's life and influence

"Who was Henry George?" and "Why is there a school with his name?" This presentation on Henry George's life is always well received and provides a strong context for the course that follows. I will send this presentation to anyone who might be able to make use of it. The way it is prepared, for most slides there is a second slide with presenter's notes provided. These presenter's notes make it relatively easy to deliver the presentation even if you are not fully familiar with the details of George's life. The presentation does consist of a large number of slides and requires two hours; more if there is extensive discussion during the presentation. However, slides can be removed easily to make the presentation shorter and to fit within whatever timeframe you have available. Here's the direct link: www.cooperativeindividualism.org/george-henry-page.html

15. Council of Georgist Organizations (CGO) 2006 conference

Good weather and good company brought together some eighty adherents to the Henry George philosophy to suburban Chicago last month, from July 19th thru the 23rd. Attendees survived all of the standard organization meetings that the conference setting facilitates. Everyone thanked the outgoing team of officers for their dedicated service over the last few years and welcomed the new group of leaders elected to steer the CGO over the next three years. Taking officer were: President, Ted Gwartney; Vice President, Ed Dodson; Secretary, Pia de Silva; Treasurer, Toni Gwartney.

Among the many highlights of the conference were a roundtable for Georgist writers moderated by author Heather Remoff, a stirring PowerPoint presentation on Biblical treatment of land ownership by Peoria, Illinois Georgist John Kelly, and a presentation on the history and future of the business cycle by Australian Georgist Phil Anderson; Anderson earns his living presenting seminars on the subject to investors.

The event that caused the most excitement at the conference was the release of a new, modernized edition of Progress and Poverty by Bob Drake, President of the board of the Henry George School in Chicago, with funding support by the Robert Schalkenbach Foundation. Over one hundred copies of this new version of the book were sold during the conference. May all Georgists get the book and put it into the hands of people who will read it with good result.

At the conference banquet, we were treated to great food and great entertainment. The annual Henry George Lifetime Achievement awards went to two individuals and one organization: Jake Himmelstein, for his volunteer work; the Henry George School of Chicago, for educational excellence; and, to Jeff Smith of the Forum on Geonomics, for his accomplishments in the realm of activism. We thank everyone who attended and participated in the conference. Planning is already underway for the 2007 CGO conference to be held at the University of Scranton, in Scranton, Pennsylvania.

16. HG Teachers meet

The HGS-NY Board of Trustees, its President Dan Kryston, and Director Cay Hehner invited the people principally involved in Georgist education to a one-day conference on Georgist education at the Chicago CGO.

The morning session was dedicated to the didactical method of "close reading." The text was the next to the last chapter of Henry George's Perplexed Philosopher called "Principal Brown," which may have been co-written or ghost-written by Mark Twain. We have found that the the more time we dedicate to reading texts of Henry George and related authors together in the classroom, taking turns reading, and discussing difficult or unfamiliar terms, the more positive the student response and the more consistent the retention rate. If the sensitive pocketbook nerve is touched, even the slowest learners seem to get smart really fast! After the "close reading" exercise, every attendee gave a brief summary of their philosophy and activities.

The afternoon session presided over by Lindy Davies, featured Paul Martin who gave an impression of the difficult yet promising situation in Nicaragua. Next Bob Drake offered the DESA attendees some vintage samples of his simplified and updated Progress and Poverty. Edward Dodson gave an accelerated Thomas Paine PowerPoint presentation. Finally, Lindy showed us some facts and figures developed by himself and Michael Curtis conveying George's insights to students. 

Thanks to all, and especially Bob Drake and Chuck Metalitz, our Chicago hosts as well as the CGO organizers!

17. J. W. Bengough on the wealthandwant website

I'm announcing one new item on the wealthandwant.com website and seeking a bit of information before I put up another.

The new item is J.W. Bengough's The Up-To-Date Primer: A First Book of Lessons for Little Political Economists In Words of One Syllable. It was originally published in 1903 and was reprinted by Fels in the teens and Schalkenbach in the mid 30s. It consists of seventy lessons, each with a woodcut and some text. Rather than posting the woodcuts, I've described each one.  I've scanned them all, but so far have not attempted to size them so they work efficiently online.

My query is about another of Bengough's works, On True Political Economy (The Whole-Hog Book), also written in words of one syllable. Here I'm working from a version on Ed Dodson's website. Unfortunately, a bit of text is missing from Chapter 8. Specifically, here's what I've got:

Here are at least eight points which the plan of Doles can claim to score. For, in the case of the High Tax plan:
1. The wit of man can not so fix it as to help all trades in a fair way. What helps one hurts the next. If you put a tax on tools to help the trade that makes tools, you, of course, hurt the trade that has to use such tools, and as new trades spring up, this mess grows worse and worse.
2. Aid has now to be lent to new trade, as pap is fed to babes, and it is a case of pay, pay, pay, till the child is grown up. But, strange to say, it does not grow up at all, but with each year of its age, calls for more and more pap.

3. No man on earth, let him be wise as he may, can tell what is paid now to any one trade by the Tax plan, nor what they do for what they get.
5. There is nought so hard to get rid of as a tax once put on goods. It will grow, but it will not come off.
8. A rise in the price of goods is the heart of the whole scheme. If there were no such rise, where would the "aid" come in?

Do any of you have a copy of this one, from which you could provide points 4, 6 and 7?
Thanks!

18. What is African-American Land Ownership?

Land ownership is a vital asset to all communities.  During the last century, African-American land ownership has rapidly declined. Comparing the U.S. Agriculture Census data on African-American farmland ownership for 1910 and 1997, it shows a drastic decline from its peak of 15 million acres in 1910 to 2.4 million acres in 1997. A recent study estimated that in the early 20th century, rural landownership among African-American farmers and non-farmers was between 16 and 19 million acres (Gilbert, J., 2002). The 1999 Agricultural Economics and Land Ownership Survey (AELOS), which assessed private rural landownership across race and use (i.e. farming, forestry, etc.), found that there are currently 68,000 African-American rural landowners and they own a total of approximately 7.7 million acres of land, less than 1% of all privately owned rural land in the United States (AELOS, 1999), 60% of which is owned by non-farmers (AELOS, 1999). However, this acreage is valued at $14 billion (AELOS, 1999). With rural landownership clearly being a significant economic resource base in the African-American community, why do African-Americans continue to lose their land?

19. AMI Monetary Conference Speakers Schedule in living color

We've posted a color brochure on our Monetary Reform Conference, with speakers schedules, and talk descriptions, at our website at www.monetary.org/2006schedule.html. There are 11 new speakers this year, on topics that will greatly advance our understanding of monetary systems, and of how to organize politically to enact real reforms. Take a look. Please forward this short message to your email lists now. There's still time to register, but do so soon. Some student scholarships will be available. One of our main aims is to have a really good time! That's important, too.

20. Global Conference on Environmental Taxation

The seventh Annual Global Conference on Environmental Taxation will be October 22-24 in Ottawa, Canada. The theme of this year's conference is moving from theory to practice. The conference program will present research that examines the role of fiscal and other economic instruments in helping society make the transition to environmentally sustainable, just, and prosperous economies. Presentations will be grouped within the following six sub-themes: political feasibility; competitiveness; subsidies; instrument choice; valuation and measurement; and case studies. For more information visit the conference homepage at: www.environmental-tax-conference.uottawa.ca/.

21. Call for papers for International Conference

Living on the Margins: Vulnerability, social exclusion and the state in the informal economy

The Isandla Institute and the Programme for Land and Agrarian Studies at the University of the Western Cape, in partnership with the Chronic Poverty Research Centre, invite submissions for papers and presentations for a conference exploring the issues facing those in informal employment and at the margins of the formal economy in South Africa – the controversial idea of a "second economy" existing alongside but disconnected from the formal economy. The conference will bring together current knowledge and cutting-edge research on the dynamics of economic marginalization and its implications, and will question the adequacy of dominant accounts of marginalization. It will encourage interdisciplinary debate and explore the power and adequacy of competing or complementary explanations for the causes of chronic poverty and continuing vulnerability. It will create a forum for critical debates and creative discussions between researchers and practitioners (from government and civil society) who are practically engaged in poverty reduction, pro-poor policymaking and implementation and poverty alleviation.
Website: www.plaas.org.za/
Conference organizing committee: Armando Barrientos (CPRC/IDS), Andries du Toit (CPRC/University of the Western Cape), Sam Hickey (CPRC/IDPM), Uma Kothari (IDPM), Francie Lund (UKZN/WIEGO) and Mirjam van Donk (Isandla Institute).

22. New 2007 Conference developments

The CGO's conference next year will be held at the University of Scranton, July 22-27. Its theme is "Land, Labor, and Social Justice from Two Perspectives." Based on interest and the overall schedule, we anticipate that some sessions will run concurrently, some be repeated. Can you think of any subjects of general interest to CGO members and attendees? Please send your ideas and/or proposals for presentations, panel discussions, or roundtables on to CGO Vice President, Ed Dodson, at  ejdodson@comcast.net  no later than September 30, 2006.

Scranton is located on Interstates 81 and 84, just south of the central New York State border. It is a relatively easy drive from Philadelphia, Baltimore, New York and New England. Georgists living in New York City or its nearby suburbs can take either Greyhound or Trailways buses from the Port Authority terminal. The trip takes about three hours, and there are at least eight runs daily. The conference hotel has a shuttle that will pick people up at the bus station. AMTRAK train service is available from Philadelphia or New York City. For those flying, Avoco International Airport (AVP), which serves both Scranton and Wilkes Barre, has 75 direct flights and 450 one-stop connecting flights daily. From most airports, flights are very affordable. Again, our hotel offers a free airport shuttle. The planning committee does not recommend flying into the Newark, New Jersey airport because of the increased travel time. You would need to first take a shuttle into the New York City Port Authority and then take a bus to Scranton; this will add at least four hours to your travel time.

23. Letter to Editor

Network with Peak Oil people

These peak oil grass roots groups are a growing potential of Georgism supporters. Many may feel attracted to its structural contribution to a re-balanced economy. Can you inform your many readers and encourage them to get involved in peak-oil thinking and action groups? I write about peak oil since 2001, and now it is getting serious. Are many Georgists indeed motivated by the Club of Rome and other "green" scenarios?

"Helping cities, towns, and municipalities adapt to Peak Oil"
By Randy White,  The Energy Bulletin

The biggest issue facing the Task Force is how to help businesses and citizens make changes for a reality many of them are unaware of and unprepared for. With such a complex system oil-based system of interdependencies, small changes will not be enough to offset the anticipated devastating impacts of peak oil. The city can create assistance and learning programs catered to biointensive food growing practices appropriate for geographical areas. For citizens without land access, create bond measures or taxes for buy-back land/home programs and fund the growth of community gardens in the city and surrounding suburbs. Study and prepare plans to begin relying on food generated and transported within a 100-mile radius of the city. Adjust the radius depending on available farmland.

Randy White is a member of the Portland Peak Oil Task Force. He works as an advertising executive for AM620 KPOJ, Portland's Progressive Talk Station.

24. Bill Judson

It is with great sadness that I announce the death of the Council's sign maker, James W. "Bill" Judson. Many people did not know Bill, but you saw his signs and logos. He designed the 1995 Chicago conference logo, which was reused in 2006. Bill was a lifelong resident of Evanston, but had moved to Galena about two years ago. We are sorry to lose him.

25. Next Month's Georgist News

26. AT THE MARGIN: Quips and Quotes

A vision without a task is but a dream, A task without a vision is drudgery, A vision and a task is the hope of the world.
– a church in Sussex, England c. 1730

Thought for the day: never be afraid to try something new. Remember that amateurs built the Ark. Professionals built the Titanic.

Elsewhere, in his State of the Union address Tuesday night, President Bush listed a series of accomplishments of his administration, including that the United States is warmer than it has ever been.

27. About The Georgist News

Do you know someone who'd enjoy reading this e-monthly? Please forward them an issue and ask them to subscribe, or send us their edress. As always, it's free. Thanks.

The Georgist News is also on the www at www.georgist.com/.