134 RATES AND TAXES 



And in confirmation of the general argu- 

 ment, it may be said that according to the 

 report of the Commission the landowners 

 have suffered most severely. The loss caused 

 by rates and taxes is, of course, relatively 

 small compared with the influence of prices. 

 The point is, that the effect, so far as it 

 does operate, is the same. A large part of 

 the loss is ultimately thrown on the rent. 



And this is natural from the very idea 

 of rent. Rent is a surplus, and economically 

 is only entitled to the second preference 

 in the distribution. This is true, not only 

 of the true economic rent for the natural 

 qualities (which has largely disappeared), but 

 of the profit rent for the landlords' capital, 

 which has become part and parcel of the 

 land. 



Again, it may be observed that the rates 

 are supposed to be levied only on the net 

 rental or surplus (after allowing for insur- 



