--- Pat Gunning wrote:

> If a tax on oil was anticipated, it would reduce the
> incentive to search for oil.
> Surely George did not have in mind taxing desert
> land. 


Henry George advocated taxing only the economic rent
of land.

By definition, economic rent is the income beyond that
which puts the factor to its most productive use.
Therefore, if entrepreneurs anticipate a tax on the
economic rent of oil, it will not diminish the
incentive to search, as their economic profit will
still be above normal opportunities.

For example, suppose you are a sports star who can
fetch $2 million per year playing sports, and the next
best opportunity will only yield $100,000.
If there is a tax of $1 million on his income, would
he give up sports to get only $100,000?

Fred Foldvary