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Rent: Society’s Taxable Income (aka ATCOR)

JOHN LOCKE said it first. In 1691, he wrote a letter to a Member of Parliament in which he warned that it was futile to tax workers’ wages. His insight was published in Some Considerations on the Consequences of the Lowering of Interest and the Raising of the Value of Money. Such taxes would reduce take-home pay below what people needed to live on. So taxpayers would defend their living standards by reducing the Rent that they paid for the use of land. In other words – ATCOR: All Taxes Come Out of Rent.

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