THE GEORGIST NEWS

For the first time in months, space allows us to incorporate new features. Read below the current status of the housing bubble, plus a letter printed in GB's Financial Times. When you get one of yours onto the op-ed pages, please c.c. us. Last summer, somehow an email slipped through the cracks; when I went to repair the cracks, I found accolades for our own Ted Gwartney, belatedly reported below.
Please note, we've replaced @ in addresses with "at" to fend off the harvesting of addresses by spammers when we put the newsletter on the Web. Enjoy!

CONTENTS: (to return here just click the headline)

  1. GB's Liberal Democrats move geo-ward
  2. Assessor Gwartney answers his calling
  3. What would be more fair than the present property-tax system?
      Here are five proposals
  4. Postage stamp for ol' Henry
  5. In Montreal, die and keep paying rent
  6. Sightline Institute (formerly Northwest Environment Watch) on LVT
  7. GB's Financial Times in a eureka moment
  8. Portland paper gives geoism space
  9. House-plus-sites' prices finally cool
10. School of Cooperative Individualism update
11. Web data on inequality
12. New online journal invites contributions
13. The Climate Project Training Program
14. Istanbul 2007 - A Non-violent Path to Conflict Resolution and Peacebuilding
15. Something Different for 2007
16. Next Month's Georgist News
17. AT THE MARGIN: Quips and Quotes
18. About The Georgist News

1. GB's Liberal Democrats move geo-ward

Over 4,000 delegates, the most ever, attended a Liberal Democrat Conference. We can now confidently go to the British people with the most Georgist economic policy in over 70 years.

Mover: Vince Cable, MP (Lib. Dem. Shadow Chancellor of the Exchequer) Summation: Chris Huhne, MP (Lib. Dem. Shadow Secretary of State for the Environment, Food and Rural Affairs)

Conference endorses policy paper 75, Fairer, Simpler, Greener, as a statement of the party's policies for revenue-neutral reform of taxation based on these principles. Conference in particular welcomes:

1.  The specific proposals for the national budget in a new Parliament to make the direct taxation system fairer and simpler by:

1. Abolishing the existing 10 pence starting rate of income tax, taking more than two million people out of tax altogether and removing one rate of tax.
2. Raising the employee National Insurance Contributions threshold so that NICs begin to be paid at the same level of income as income tax, simplifying the system, and seeking to make employee NICs payable on annual rather than weekly earnings.
3. Raising the starting threshold for the 40% higher rate of taxation to £50,000 per annum, taking 1.3 million people out of paying a higher rate tax.
4. Cutting the basic rate of national income tax by 2p, as part of a shift from central to local taxation.

2.  Proposals to tax environmental pollution and resource usage and help fund our other reforms through a "green tax switch" by:

1. Phasing in reform of the basis on which business rates are
   charged to site value rating.

Tony Vickers:  There is more to be done. We failed to get an amendment calling for a timetable (one year) in which to "develop further policies for land taxation." Please write Vince Cable, MP (cablev at parliament.uk): offer help in developing such policies as quickly as possible.

2. Assessor Gwartney answers his calling

Ted Gwartney's eye for real estate has taken him from appraising trailer parks in Las Vegas to consulting on appraisal in post-Communist Russia, to tangling with the owners of a $45 million Greenwich estate as the town's assessor. Gwartney, 64, came to Greenwich from Bridgeport 21/2 years ago after serving as city assessor there for three years. Gwartney oversees an office of 13 people.

The son of a Southern California real estate broker, Gwartney said he found his calling as a student at San Diego State University after reading about families affected by high property taxes. "It's the concept of equity. I've always had a very strong ethical streak in me to the point where I considered becoming a minister at one point." During Gwartney's final year in college, he really came to know the value of real estate by selling foreclosed homes for a bank at $20,000 each. "Those houses today are selling for $800,000 apiece," he said. "I'm just kicking myself that I didn't buy one."

A father of three grown children who lives in Bridgeport, [he] is known to bring his wife, Toni, to meetings. Gwartney has overseen hundreds of revaluations during his four-decade career. "He's the most experienced assessor the town has ever had," said finance board Chairman Peter Tesei. Gwartney started his career as an appraiser trainee for Sacramento County in his home state of California and landed his first supervisory role as city assessor in Southfield, Michigan. He returned to Sacramento County three years later to serve as deputy assessor, but eventually left the public sector to take a job appraising trailer parks, hotels and shopping centers in the western U.S. as a fee appraiser. In the 1970s, the public sector beckoned once again, and Gwartney accepted a job as city assessor in Hartford and then as provincial assessment commissioner in the Canadian province of British Columbia. In Canada, he helped the province weave together a mishmash of local and regional assessment offices and computer databases into a single public assessment authority.

In Russia, Gwartney provided bureaucrats who had no system for raising taxes to speak of, a similar blueprint. Prior to coming to Greenwich in February 2003, Gwartney oversaw Bridgeport's first citywide property revaluation in 17 years. In addition to his public-sector duties, Gwartney has taught real estate appraisal at Baruch College in New York City. He is president of the quarterly publication, The American Journal of Economics and Sociology, and has consulted the United Nations on building and sustaining communities. In his spare time he enjoys traveling and is the president of his homeowners' association in Bridgeport.

"I'll tell you the house that's really nice, that nobody ever gets to see, is Mel Gibson's house," said Gwartney, who, since his arrival in February 2002, has grabbed headlines for his rulings on celebrity properties, including one owned by the "Lethal Weapon" star. Gwartney turned Gibson's Old Mill Road property down for farmland status last fall after the actor's representatives applied for the tax break on 17 of the property's 75.7 acres. The assessor ruled that the property was not being used as a bona fide farm, disqualifying Gibson for an annual $10,000 tax break on the $17.7 million property. "You never think about the ownership," Gwartney said. "You think about the real estate. The owner does not add value to real estate."

Other celebrities and prominent residents to tangle with Gwartney include Diana Ross, the late Citibank chairman, James Stillman Rockefeller, and the owners of a $45 million Conyers Farm estate. "He speaks with a heavy stick," said Stamford Assessor Francis Kirwin, who has known Gwartney for about 30 years. "I think he's doing what assessors are supposed to do." The overall value of taxable property in Greenwich, which is currently estimated at $20.5 billion and is the highest for any municipality in the state, nearly doubled after the town's last revaluation in 2001.

Gwartney hopes to avoid the contentiousness usually associated with the process this fall. "You attempt to explain to people what you've done, how you've done it and why you've done it," Gwartney said. He has budgeted $500,000 for the undertaking, about 15 percent of the cost of the last revaluation. "Hopefully I am able to convince them that it was done equitably and fairly. You want to have fair assessments so that no one is paying more than they should be or less than they should be." Several property owners have successfully challenged Gwartney's findings to the Board of Assessment Appeals and to state Superior Court, including Ross and Rockefeller. But those who have worked with Gwartney say he is open-minded. "I think he's a very inclusive guy and very willing to talk to anyone about the values of the property," said Jeff Reardon, chairman of the Board of Assessment Appeals.
Copyright © 2005, Southern Connecticut Newspapers, Inc.

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By Sue Walton (swalton at surfbest.net):  "The CGO's favorite Assessor, Ted Gwartney, broke his right shoulder in a fall he suffered on his return home from Philadelphia. He had surgery to have it pinned back together. Ted Gwartney is now Vice President of the Council of Georgist Organizations."

Ted (Tgwartney at aol.com) replied:  "Thank you for your concern over my broken shoulder last Sunday night. The operation on Tuesday went well and I will be back to work on Monday, film a TV show Tuesday night, and meet with homeowners answering questions about the revaluation on Thursday night. Thank you for the fruit basket."

3. What would be more fair than the present property-tax system? Here are five proposals

1. Land-value taxation:

In Quebec and most of North America, property tax is charged on the value of land and building together. But many counties in Melbourne, Australia, and a few other places in the world, tax the land alone, not the building on it. A variant form is called "split-rate" property tax, in which land is taxed at a higher rate than the building. It's used in parts of Pennsylvania, for example. Unsal Ozdilek, a real estate professor at Université du Québec at Montreal's École des sciences de la gestion, has studied assessment systems around the world and advocates for land-value taxation. It existed in western Canada in the early 1900s. Land-value and split-rate taxation make it costly for speculators to sit on vacant land because they pay the same tax as the owner of an office building on comparable land, he says. Studies show land-value taxation discourages speculation, encourages development in the short term and helps curb urban sprawl, Ozdilek says. Building improvements don't add to property assessment or taxes under land-value taxation, so it removes a disincentive for renovations and stimulates demand for construction materials and employment, he says. The idea developed with Henry George, a 19th-century editor and political economist in the United States who argued speculators shouldn't profit from rising land value because they've contributed nothing to it. Ozdilek says the system would be best applied uniformly across Quebec and Canada, otherwise speculators would have only to move to another jurisdiction to avoid land-value taxation.

4. Postage stamp for ol' Henry

Using their special-order program, at my request, Canada Post has issued the first postage stamps ever which show Henry George. They are available from the Robert Schalkenbach store: www.schalkenbach.org/Henry-George-Postage-Stamps.htm.
The stamps are valid for postage for one letter in Canada, and for letters from Canada with additional postage. There are 40 stamps per sheet. The stamps were printed by the Canadian Bank Note Company. The day of issue was July 14, 2006.

5. In Montreal, die and keep paying rent

If you thought your days of paying rent would be over when you died, think again. Cash-strapped Roman Catholic parishes across Quebec are demanding a form of rent on burial plots or else the bones of Great Uncle Aloyisuis will be, well, evicted. "My aunt's papers said 'in perpetuity.' All it means to them is 'till the end of the lease." Often the article relating to plots as sacred goods is invoked to prove that in fact no one owns the plot. As collection-plate revenues continue to dwindle and parishes struggle to pay maintenance costs for churches and cemeteries alike, they are forced to become stricter landlords of the dead. Then there's the issue of dwindling space in Montreal and other regions. "If parishes were always obliged to make new lots for those who die, the whole city of Montreal would be a cemetery."

6. Sightline Institute (formerly Northwest Environment Watch) on LVT

Leaders know about land-value taxes and their benefits, but they almost never hear about them from their constituents. A 2003 survey of legislators — I know, I'm behind on my reading — and local elected officials found that among both groups, two-thirds of respondents were either somewhat or very familiar with the concept of land-value taxation. Some 63 percent of state lawmakers and 77 percent of local officials believed that land-value (or split-rate) taxation would be a positive stimulus for urban development. (They're right. It accomplishes this trick by inducing land speculators to change their investment strategy into economically productive channels rather than the economic parasitism of speculation. We've written about it in Tax Shift and This Place on Earth 2001.)

7. GB's Financial Times in a eureka moment

Recessions, poverty amid plenty and a solution in a eureka moment

Sir, I had a near economic eureka moment (Letters, September 21) when reading John Kay (and Mervyn King's) textbook on taxation in the early 1980s. They were describing the unique advantages of the land tax proposed by Henry George in 1879. True enlightenment came when I read the real thing, Progress and Poverty. It was George who had the eureka moment while investigating why there are recessions and poverty amid plenty and came up with the frighteningly simple solution: the collection of community-created land values for public revenue.

8. The Portland Tribune gives geoism space

Even if growth happens on its own, why limit our choices to doing nothing or bowing to planners? Why not harness the market to use land efficiently — and do so now, before any hordes show up? Without expanding the urban growth boundary by nearly 25,000 acres, we could meet Metro's population projections — or just improve our quality of life. All we need do is convert vacant lots to rational use; that is, erect buildings of four to six stories where now there's only one story, or just a parking lot. Owners will use their land more wisely with the right incentives, if we just shift the property tax from buildings to land. To pay it, owners put their land to more intense use, closer to land already used intensely. Put this tax shift on the ballot. Let the majority of area residents — not career politicians — shape the future of this region. Let's not gloss over the severe, deleterious impacts from sprawl — already here or coming our way — with gilded propaganda about "planning," when we could curb speculation and spur owners to do the right thing right now.

9. House-plus-sites' prices finally cool

The receding U.S. housing market crossed another milestone in August, as the median sales price of existing homes fell for the first time in 11 years and for just the sixth time in the past 38 years, the National Association of Realtors said. The median sales price fell 1.7%, from $229,000 in August '05 to $225,000 in August '06. It was the first time since April 1995 that median prices had fallen on a year-over-year basis. It was the second-largest decline in the 38-year history of the Realtors survey, exceeded only by a 2.1% drop in November 1990. Prices had been rising at an annual rate of 7.5% over the past five years. As late as October, prices were up 16.8% on a year-over-year basis. The deceleration has been the fastest in the history of the survey. Even after this decline, prices are still up 27% over the last three years.

Sales of existing homes fell 0.5% in August to a seasonally adjusted annual rate of 6.3 million, the industry group said. It was the lowest sales pace since January 2004. Sales, down 12.6% in the past year, have fallen five months in a row.

The realtors say a six-month supply represents a balanced market. Meanwhile, inventories of unsold homes rose to a 13-year high, up 1.5% to 3.92 million, a 71/2-month supply at the August sales pace. That's the most in relation to sales since April 1993, during the last significant housing price downturn.

10. School of Cooperative Individualism update

Those who attended the Council of Georgist Organizations conference during July heard me talk about the third volume of my book, The Discovery of First Principles. I decided some time ago not to have this volume published by iUniverse. Rather, I announced I would be making the volume available online, without charge. As of now, volume three is there for you to read. This volume covers the development of economic theory and history during the 20th century, with a parallel discussion of the expansion and sad decline of the Georgist cause. Also, a considerable amount of new material has been added to the SCI library (with much more to come over the next month or so, primarily from the 1940s publications The Freeman and Land and Freedom). While I was in Chicago for the conference, I spent the better part of two days going through the archives of the Henry George School, taking notes on the activities of many Georgists associated with the School, and photocopying some of their writings from the primary organ of the Chicago Georgists, The Henry George Fellowship News. Most of this material is now in the SCI library, and many new listings have been added to the Biographical History of the Georgist Movement.

If you have not visited the SCI website (www.cooperativeindividualism.org) recently, or ever, there are even more reasons to visit and return. One is a new "Henry George Page" that pulls together the links to George's writings and writings about him. Additionally, you will find a new PowerPoint presentation on George's life and work. A presenter's version with discussion notes is available for anyone who would like to utilize the PowerPoint for a program on George in your community. As always, comments, suggestions and yet undiscovered historical material are welcomed and appreciated.

11. Web data on inequality

My website (www.wealthandwant.com) has some of the metrics on inequality in the US. (I've also got the url for wantandwealth.com reserved, and may put that kind of information there.) If we can make ourselves the best place to turn for data on inequality, more people will see our solutions. I've got the data – and much of it already in html format – and am happy to share it if someone else has time to put it up before I do.

Ed Dodson here: If anyone wants to use the format I put together for my talk at the 2003 CGO conference in Bridgeport, CT, and update it with current data, I am happy to send you the html files to work with. You can take a look at the following paper at the SCI website library. dodson-wealth_of_our_nation_2003.html

12. New online journal invites contributions

The new online journal Re-public http://www.re-public.gr/en/ invites contributions for its upcoming special issue entitled "Beyond private and public: The promise of the commons". The dichotomy between the private and the public forms the basis of theories of democracy. In recent years, this distinction has been challenged. Examples include the erosion of the public sphere by private interests, and the increasing control of the private domain by state authorities. New concepts and practices that move beyond this primary dichotomy are needed in order to face the contemporary crisis of democratic societies. We are proposing the rebirth of the commons as a new social and economic space, beyond government regulation and market control, as a feasible institutional alternative to both private and public arrangements. This issue aims to explore the openings that the concept of the 'commons' presents for democratic theory and practice. Possible topics include:
• Developing a theory of the commons
• Problematising the private/public dichotomy
• The open source movement
• Internet government
• The information society
• The commons and governance
• Management of (intellectual) property
• Tracing the commons in contemporary social practices

Essays should be approximately 1,000 words long. We will also publish journalistic pieces or reports of shorter length. Please submit contributions in any electronic format to: phatzopoulos at re-public.gr
Deadline for articles: 20 October 2006

13. The Climate Project Training Program

It's your turn to demonstrate your fantastic PowerPoint skills! Beginning in the fall of 2006, Al Gore and a team of renowned climate change scientists and educators will train more than 1,000 individuals to give a version of his presentation on the effects of – and solutions for – global warming to community groups throughout the U.S.. The presentation and training program are based on the message Mr. Gore has been giving for more than two decades, which inspired the documentary film and book, An Inconvenient Truth. The Climate Project will host seven training sessions between late September and January 2007 in Nashville, Tennessee. The two-day program is designed to familiarize trainees with climate change science, equip them with new presentation skills, and develop a new dynamic online learning community for ongoing activities. The training is open to individuals of all ages, educational and technical backgrounds. Visit the Climate Training Project website for details and to apply for the program!

14. Istanbul 2007 - A Non-violent Path to Conflict Resolution and Peacebuilding

Share your vision and wisdom with us at our forthcoming conference at Fatih University, Istanbul.. It is our belief that, working together to serve the common good, we can create a world that is just, free, and prosperous for all.

Conference Announcement & Call for Papers: the 6th Annual International Conference on an Interfaith Perspective on Globalisation for the Common Good: A Non-violent Path to Conflict Resolution and Peacebuilding (Building a World that is Just, Free and Prosperous for All) in Istanbul, the City of Understanding and Reconciliation between East and West, 5-9 July 2007, with post-conference optional visits on 9-11 July to Konya (the resting place of Rumi), and on 11-14 July to Symrna, Aegean District and Bursa (the first Capital of the Ottoman State) For details please see: www.commongood.info/announcement2007.html

15. Something different for 2007

The 2007 CGO Conference Committee is considering something different. When participants register they will also be asked if they have any special needs per the Americans with Disability Act and what kind of sleeping accommodations they wish - hotel or communal dorm. As part of the registration form, attendees will be asked for a credit card to which to charge their room fees. Please note that dorm space will be limited, and must be one hundred percent pre-paid. Watch this space for important developments in the coming months!

16. Next Month's Georgist News

17. AT THE MARGIN: Quips and Quotes

"Facts do not cease to exist because they are ignored."
– Alduous Huxley

"You're all entitled to your own opinions, but you're not entitled to your own facts."
– Ostrum (?)

"He who sees the truth, let him proclaim it, without asking who is for it or who is against it. This is not radicalism in the bad sense, which so many attach to the word. This is conservatism in the true sense."
– Henry George, "The Irish Land Question"

"If stupidity got us into this mess, then why can't it get us out?"
– Will Rogers

18. About The Georgist News

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