Spencer Heath Archive

Item 1963

Pencil Calculations on back of a scrap sheet of paper

bearing the date June 3, 1939

 

30,000 population

¼% of national population

High grade people

Say ½% of national income

Income to town: 30 millions

Assume taxation in this town as 50% of its share (30 millions) of the national income.

Total taxes then are ½ of 30,000,000  =  15,000,000

Assume taxes apportioned

Federal 50%

State and County 25%

Town 25%               3,750,000

________________________

Assume that 40% of the town taxes are unnecessary.

Then 1,500,000 of town taxes can be abolished.

Suppose abolition of 1,500,000 local taxes would benefit the townspeople’s income by only 3,000,000 (instead of 4½ millions).

Then the profit to land owners and land users together will be 3,000,000.

Assume that all the land is owned by 1/3 or 10,000 of the town people.

Then these 10,000 people would profit by, say, ½ of the 3,000,000 benefit which would be 1,500,000 profit for these 10,000 people or an average of $150 each.