ABSTRACT
"Property taxes" includes taxes on stock and transfer of, and flow from, property: taxes based on the value, area, soil classification and the like as of a given date. Taxes that take a proportion of money income or crop yield in a year ; and taxes on sale, lease, gift, bequest, or other transfer of rights to property. Property taxes are therefore the counterpart of payroll taxes but take forms that the latter cannot, since future labor is not usually capitalized. Together, the taxes cover all factor activity: taxes on capital and taxes on labor. Business firms, having been paying under the consumption type of value-added tax no tax on income created by capital, and a substantial tax on labor income and other non-capital factors, would now pay no tax on value added by labor and other non-capital factors and a very heavy tax on value added by capital.
