--- 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