Q22. What is privilege?
A. Strictly defined, privilege is, according to the
Century Dictionary, "a special and exclusive power
conferred by law on particular persons or classes of
persons and ordinarily in derogation of the common
right."
Q23. What is today the popular conception of
privilege?
A. That it is the law-given power of one man to profit at
another man's expense.
Q24. What are the principal forms of
privilege?
A. The appropriation by individuals, or by public service
corporations, of the net rent of land created by the
growth and activity of the community without payment for
the same. Also, the less important privileges connected
with patents, tariff, and the currency.
Q25. Where in does privilege differ from
capital?
A. Capital is a material thing, a product of labor,
stored-up wages; an instrument of production paid for in
human labor, and destined to wear out. Capital is the
natural ally of labor, and is harmless except as allied
to privilege. Privilege is none of these, but is an
intangible statutory power, an unpaid-for and perpetual
lien upon the future labor of this and succeeding
generations. Capital is paid for and ephemeral. Privilege
is unpaid for and eternal. A man accumulated in his
profession $5,000 capital, which he invested in land in
Canada. Ten years later he sold the same land for
$200,000. Here is an instance of $5,000 capital allied
with $195,000 privilege. This illustrates that privilege
and not capital is the real enemy of labor.
Q26. How may franchises be treated?
A. Franchise privileges may be abated, or gradually
abolished by lower rates, or by taxation, or by both, in
the interest of the community.
Q27. Why should privilege be especially
taxed?
A. Because such payment is fairly due from grantee to the
grantor of privilege and also because a tax upon
privilege can never be a burden upon industry or
commerce, nor can it ever operate to reduce the wages of
labor or increase prices to the consumer.
Q28. How are landlords privileged?
A. Because, in so far as their land tax is an "old" tax,
it is a burdenless tax, and because
their buildings' tax is shifted upon their tenants; most
landlords who let land and also the tenement houses and
business blocks thereon avoid all share in the tax
burden.
Q29. How does privilege affect the distribution of
wealth?
A. Wealth as produced is now distributed substantially in
but two channels, privilege and wages. The abolition of
privilege would leave but the one proper channel, viz.,
wages of capital, hand, and brain.
Q27. Why should privilege be especially
taxed?
A. Because such payment is fairly due from grantee to the
grantor of privilege and also because a tax upon
privilege can never be a burden upon industry or
commerce, nor can it ever operate to reduce the wages of
labor or increase prices to the consumer.
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