Question

Henry George’s argument that land should be taxed rests on the assumption that:

1. Landowners are greedy and overcharge renters
2. Land should belong to everyone.
3. Land has a perfectly elastic supply and should be taxed away.
4. Land is perfectly inelastic in supply, and therefore landowners do nothing to deserve increases in rent.
5. Land ownership like labor is a productive activity and should be taxed.

Answer 1

Land ownership like labor is a productive activity and should be taxed.

(Henry George considered land ownership a productive activity which earns income to landlords so he argued that it should be taxed and dividends should be distributed.)