RURAL PLANNING AND DEVELOPMENT 123 



But the injustice goes further than is here indicated because, in 

 the present system of assessing the value of the land, practically little, if 

 any, regard is paid to its earning power, and the discount which is 

 allowed, in fixing the assessment, in respect of the loss of compound 

 interest while the land is being held is, as a rule, totally inadequate. 

 When the basis of assessment of land is the sale price of other land in 

 the same neighbourhood that price should be discounted by the num- 

 ber of years which the land is likely to be held in expectation of being 

 sold making allowance for the owner being willing to sell. Land 

 which is worth $500 in five years is not likely to be worth more than 

 half that sum to-day, having regard to the loss of compound interest 

 on the investment and the taxes which will have to be paid. 



Commissioner Yorath, of Saskatoon, in a recent report to the 

 city council, quoted in the Canadian Municipal Journal, reports 

 unfavourably regarding the system of taxation which has been in oper- 

 ation in western cities. He 'argues that the basis of taxation should 

 be broadened so that taxes are distributed according to ability to pay, 

 that the land taxes, under present conditions, create a burden which 

 is becoming almost unbearable upon owners of vacant property, 

 and that they do not compel an owner to improve his property. 



On the other hand, the system of single tax appears to be suc- 

 cessful in its operation in the rural districts of Alberta. The Deputy 

 Minister of Municipal Affairs of Alberta says that limiting taxation 

 to land values has worked out satisfactorily in the rural part of the 

 province and any attempt to change it would be resented. 



Other proposals of taxing land are made, such as that advocated 

 by the United Farmers of Ontario, namely, the application of a direct 

 tax on improved land values, including all land resources. 



SOME CONCLUSIONS REGARDING LAND TAXATION 



The variety, complexity and number of the proposals for land 

 taxation reform which are discussed from time to time show that 

 the public mind is dissatisfied with existing conditions. An effort 

 has been made to summarize the nature of some of the proposals, 

 without attempting to arrive at any definite conclusions on their 

 merits. 



But it is held that: 



(1) Until the system of assessment is rectified no system of 

 taxation can be sound or achieve its object; 



(2) The operator in real estate, who holds land in temporary 



