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2017 | OriginalPaper | Buchkapitel

Rerum novarum and Its Principle on the Just Taxation of Immovable Properties

verfasst von : Francesco Forte, Flavio Felice, Elton Beqiraj

Erschienen in: On the Economic Significance of the Catholic Social Doctrine

Verlag: Springer International Publishing

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Abstract

The paper consists of three parts. The first part focuses on Rerum novarum theoretical background, where property rights as natural rights of human person have a particular relevance together with those of labour. In particular, it appeared to re-affirm the sanctity of private property sought by the American bishops in the debates with Henry George and his supporters. The second part is devoted to the property rights in Rerum novarum (henceforth, RN) and on the controversy with it by Henry George who maintained that the main purpose of the sections on property rights as natural rights was that of combatting his thesis of taxing the rent of immovable property to replace the other taxes and especially those on workers. The third part examines, by and econometric research on the OCSE countries from 1965 to 2013, whether the economic effects of this taxation are favorable on GDP growth, as maintained by Henry George, with his theory of land rent or bad, as maintained by the encyclical. It results a general negative relation of this tax to GDP growth, supporting the Encyclical position.

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Fußnoten
1
See the historical reconstruction of Catholic economic thought exposed by Almodovar and Texeira (2008, 62–87).
 
2
As a matter of fact, Rerum novarum was published in Latin in instalments on the “Osservatore Romano”, May 19, 20, 21 and the Italian translation only on the 23rd. The process of elaboration of the document has been deeply analysed by Misner (1991, 444–464).
 
3
The Italian experience was emblematic. In fact, the solution to the Roman question had brought Catholics to opt out of Catholic practical life. Indeed, Rerum novarum triggered civil involvement in political movements that peaked in 1919 with the foundation of the Italian People’s Party by Sicilian priest don Luigi Sturzo.
 
4
Contributed by Flavio Felice and Francesco Forte.
 
5
See Charrier (2012).
 
7
H.F.R. Lamennais and J.B.H. Lacordaire priests, philosophers and political activists in 1830 founded L’Ami de l’Ordre, precursor of L’Avenir, whose motto was “Dieu et la Liberté!” (“God and Liberty”). The Journal advocated an enlarged suffrage, separation of the Church and of the state, freedom of conscience, freedom of the press and of the instruction, new rights for the free associations and for the local administrations. The Journal criticized the “high industrialist barons who arbitrarily set wages”. From 1835, Lacordaire delivered from the Notre Dame pulpit his famous “Conferences” that will turn him into a pioneer in the field of social doctrine. C.F.R. Count of Montalembert who was from 1835 member of the Chamber of the Peers, by right on inheritance was the main political and ideological supporter of the freedom of education principle of the Catholic liberal French Ultramontanism.
 
8
F. Ozanam, founder of the Charity Association San Vincenzo De Paoli, during his period became professor of foreign literature at the Sorbonne University, for his researches on Dante, on the German middle literature and other contributions. He had aimed to demonstrate that the Catholic Church had been the most potent factor in civilizing the invading barbarians. According to him, the Catholic intellectuals of that epoch exerted a positive important role for the development of the modern culture. Friend of Lacordaire, he shared his ideas of freedom and democracy, concentrating on the social problem of poverty of the working class. He started a newspaper, The New Era, dedicated to securing justice for the poor and the working classes. Referring to the poor man as “the nation’s priest”, Ozanam said that the hunger and sweat of the poor formed a sacrifice that could redeem the people’s humanity. “The problem that divides men and women in our day is …whether society will be only a great exploitation to the profit of the strongest or a consecration of each individual for the good of all and especially for the protection of the weak. There are a great many men and women who have too much and who wish to have more; a great many others do not have enough, have nothing, and are willing to take, if someone gives to them. Between these two classes of men, a confrontation is coming, and this menacing confrontation will be terrible: on the one side, the power of gold, on the other the power of despair. We must cast ourselves between these two enemy armies, if not to prevent, at least to deaden the shock. And our youth and our mediocrity does not make our role of mediators easier than our title of Christian makes us responsible”.
 
9
See in this symposium Eissrich (2016), “An economist view of the work of Wilhelm Emmanuel von Ketteler and its influence on the Encyclical Rerum novarum” and §1.2 below.
 
10
According to US historian of the George Mason University Leonard Liggio the controversy between Cardinal Gibbon and Henry George catholic followers of his proposal of immovable property taxation of “land rent” was at the basis of the strong stand on the private property rights by “Rerum novarum”. Liggio writes “Henry George’s answer, or more precisely his dialogue with Leo XIII, in his Open Letter, was a continuation of a long debate between them, mainly through the hierarchy of North America’s Catholic Church. This debate has been the background and cause of Rerum novarum” in and again: “To meet the American bishops’ request of a public stand of Roman Catholic doctrine on private property in general, with specific reference to the works of Henry George, the Holy See presented the papal encyclical Rerum novarum”. See Liggio (2003). See the paper in the Italian version, in Antiseri (2005, 496 and 519–520).
 
11
For an analysis of the natural law social economics movement see Sandonà (2013, 797–808).
 
12
This presentation of A. Rosmini thought with particular regard to property rights owe much to Mingardi (2004, 63–97). With the bibliography of the works of Rosmini relevant for the theme of property rights. On the theme of the tax principles of Rosmini, see Hoevel (2007, 67–84). On the similarities of Rosmini philosophical, juridical and economic thought and those of Hayek and Ordo see Antiseri et al. (2011) on Rosmini in general see Muratore (2007).
 
13
See especially Antiseri (2010) and Heritier (2015, 1076–1078) Luigi Taparelli D’Azeglio (brother of the more known writer, painter and liberal patriot Massimo D’Azeglio, one of the main figure of the Italian Risorgimento) studied in Turin Seminar and entered in the Jesuit Company. Subsequently he was appointed Dean of the Roman College (now Gregorian University) and he reintroduced “Thomism” in the curriculum of the School.
 
14
See Bher (2003, 99–115), writes “Taparelli argued, other than the most elemental ones—such as the family or simple partnerships—are always composed of other societies. The natural and just relationships between the myriad of associations that human beings tend to form, ranging from the family to the State and beyond, he groups under the heading of ‘Hypotactic Right.’ Relatively smaller societies are called ‘deutarchie,’ or ‘secondary’ while the relatively larger, relatively more perfect or autonomous, societies, epitomized in the nation State, are ‘protarchie,’ or ‘primary’ societies. Beyond the nation State there is the association, or brotherhood, of independent peoples, called the ‘etnarchia.’”
 
15
In Italian: Saggio teoretico di diritto naturale appoggiato sul fatto.
 
16
Thomas Beher actually maintains that social Justice, according to Taparelli D’Azeglio, consists only formally Saint Thomas’ concept of “a legal order and normative ideal within a society”. In Taparelli D’Azeglio’s view of society “individuals and their various associations are given the maximum range of liberty […] with a minimum of interference from superior authorities […] governed by the principles of conflicting rights, prudence, and, ultimately, of charity”. See Bher (2013). The similarity with Rosmini theory above described, strictly liberal in the European political meaning of the word is evident.
 
17
Bher (2003, 106), writes “The word ipotattico draws from the rules of Greek grammar, hypotaxis, which governs the modalities of coordination between clauses, specifically, the arrangement of inferior clauses within the functioning of the whole sentence. It was an excellent extension into the neologism dritto ipotattico to convey the rights of social groupings, within their just relationships, organized toward the common good. The principles he elaborates in this regard have found their place, though indirectly and imperfectly, in Catholic social doctrine, known as the “principle of subsidiarity,” first explicitly used by Pius XI in the social encyclical, Quadragesimo Anno. Indeed, one may render the Greek hypo taxis directly in Latin as sub sedeo. The Latin expression subsidia applied, then, not just to mean “help”, but in the first instance to auxiliary troops within the Roman legion, as they “sat below” ready in reserve to support the battle. The “help” in this context is from the bottom up, not from the top down, as the inferior and mediating groups all participate in achieving the common good of the more perfected association. While Taparelli uses the legion as an analogy for society in various contexts, the rights and obligations derived from the laws of subsidiarity vary according to a host of historical considerations and competing rights and obligations”.
 
18
See also Mc Kinely Brennan (2013).
 
19
In Italian: “La libertà in economia”, in “La Civiltà Cattolica”, 1860, VIII, 33–53; 159–174; 414–433). Subsequently, translated in French, the papers have been collected in a volume titled Essai sur les principes philosophiques de l’Économie politique.
 
20
The following quotations are from the papers of Taparelli on the economic freedom.
 
21
It reflects the fears of Conservatives of that time that the extension of the voting rights to the masses and, more generally, to any other elector, in the area in which the kings had power, could erode the political status of the Church.
 
22
This part is done by Felice and Forte.
 
23
See Liggio, already quoted; De Rosa (1991).
 
24
In the Italian language, due to the influence exerted by Benedetto Croce, “economic liberalism” goes under the name of “Liberism”.
 
25
See on this theme Tideman (2016), “The Justice and economics of Rerum Novarum on Land” in this Symposium. This section of our paper has greatly benefited from the discussion with N. Tideman in the Symposium.
 
26
Xing (2012, 379–382) finds that the shift to taxes on financial assets favors growth or is less damaging than income taxation or labor income taxation. A shift to immovable property damages growth.
 
27
This Part has been done by Elton Beqiraj and Francesco Forte.
 
28
The 34 OECD countries are Australia, Austria, Belgium, Canada, Chile, Check Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, Netherland, New Zeeland, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, UK, USA, Norway.
 
29
The 21 EU countries are Austria, Belgium, Check Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy Luxembourg, Netherland, Poland, Portugal, Spain, Sweden, Switzerland, UK, Norway The 11 The Eurozone countries here considered are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy Netherland, Portugal, Spain. We have not considered Luxembourg, because too small.
 
30
The 6 Anglo countries are Australia, Canada, Ireland Israel, New Zealand, USA.
 
31
1. POLS = OLS (Ordinary Least Square) “Pooled” Estimator 2. POLSR = POLS (Ordinary Least Square Pooled Estimator Robust to Hetero-scedasticity) 3. FE = Fixed Effects Panel Estimator 4. RE = Random Panel Effects Estimator and 5. HT = Hausman–Taylor Estimator.
 
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Metadaten
Titel
Rerum novarum and Its Principle on the Just Taxation of Immovable Properties
verfasst von
Francesco Forte
Flavio Felice
Elton Beqiraj
Copyright-Jahr
2017
DOI
https://doi.org/10.1007/978-3-319-52545-7_11