Spencer Heath Archive

Item 592

PRESENT METHOD:

Income to Building Owner

Tax on Building Owner

Net after Taxes

Net after Taxes and Rent

2,000,000 400,000

1,600,000 600,000

_____________________________________

Income to Land Owner

Tax on Land Owner

Net after Taxes

_____________________

 1,000,000 400,000 600,000

CODMAN PLAN:

Income to Building Owner              2,000,000
Tax on Building Owner                     0

Net after Tax                                        2,000,000

Net after Rent                                      1,000,000

_____________________

Income to Land Owner         1,000,000

Tax on Land Owner            1,000,000

Net to Land Owner            0

Where does the Land Owner get the $1,000,000 taxes from? It comes from the Building Owner. Building Owner now pays $1,000,000. Whereas he formerly paid 400,000 by compulsion and 1,000,000 by competition, he now pays 1,000,000 by compulsion and 0 by competition and has a net of 1,000,000 instead of 600,000.

Net Value

Building Annual Value            1,000,000

Building Annual Tax                      500,000

Land Annual Value                      1,000,000

Land Annual Tax                                500,000

500,000

500,000