Disquisition by Scripps, E.W., The unearned increment, December 12, 1929

              Ohio University Libraries, E.W. Scripps Papers, MSS 117, Series 4, http://media.library.ohiou.edu/scripps
nru; UNEARNF.J) INCREMEN~
For a number of years past the 0ermans have been levying a
tax on the increasing value of land.
The taxip..g of this increment is a policy entirely consistent
with that of taxing incomes.
lbere are many cases and many ways by which a man may de­ri
va an income.
The present recognized system of income taxation, however,
is based on the idea that there is only one form of income, viz; cash
return for any kind of labor, husinesf'. activity or capital.
The appreciation of the -value of any property is just as
. - - much a financial income as are wages, rents or business profits.
A careful study of my own business has shown me that I de­rived
profit from it in two ways -- first, in the way of aBcees of
receipts over expenses, and second, in the growth of volume of bhsi­ness
on which a given percentage of profits may be made.
The law diminishing returns is expected to Wti'rK out in such
a way that the percentage of profits in the conduct of a large business
is not as great as the profits that can be sucared in a small business.
However, notwithstanding this law of diminishing returns, I find tbat
DrJ profits by appreciation have actually been practically three times
as great as what I might call my cash diwi8~ble or usable profits.
When some years ago the United States Congress enacted an
income tax law, I was called upon to consider What effect this law
would }~ve upon me.
Ver; quickly I found out that the problem was not a simple
I found tba t I could so conduct my business and 80 t..p" Dl1
tb..at I could either report a large income and thereby ma.k~
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