Of course it is true that a considerable part of the wage earners in our small cities own their own homes (subject often to heavy mortgages) and, _other things remaining as they are_, would like to have taxes reduced. But two facts are indisputable: the average taxes paid by the wage earners are insignificant compared with those of the wealthier classes, and the wage earner gets, at first at least, an equal share in the benefits of most municipal expenditures. The Socialists know that most of the economic benefits are later absorbed by increasing rents; and that capitalist judges and State governments will see to it that only such expenditures are allowed as have this result, or such as have the effect, through improving efficiency, of increasing profits faster than wages. Socialists recognize, however, that at least municipal collectivism is in the line of capitalist progress, with some incidental benefits to labor, while the policy of decreasing taxes on the unearned increment of land is nothing less than reaction. The only popular ground on which such a policy could be defended is the fallacy that landlords transmit to tenants the fluctuations in taxes, in the form of increased or diminished rents. Even if this were true, the tenants would be as likely as not to profit by enlarged municipal expenditures (_i.e._ in spite of paying for a _minor_ part of their cost). But in the large cities, as a matter of fact, 90 per cent of the wage earners, who are tenants, and not home owners, do not feel these fluctuations at all. Increased land taxes do not as a rule cause an increase in average rents. Increased land taxes force unimproved land upon the market, and compel its improvement, to escape loss in holding it unimproved and idle. The resulting increased competition for tenants operates on the average to _reduce_ rents, not to increase them. The taxes are paid at the cost of _reduced profits_ for the landlord--until population begins to increase more rapidly than taxes. The capitalist leaders perceive the truth as regards this plainly enough. Thus, in their anxiety to get both landlord and capitalist support in the last municipal campaign in New York City, various allied real estate interests claimed credit for their work in keeping taxes down. Commenting upon the subject, the _New York Times_ said: "Rents do not rise with taxes. If they did, the owner would merely need to pass the taxes along to the renter and be rid of the subject."[157] The next day Mayor Gaynor in a letter to the _Times_ quoted a message he had sent to the city council in the previous year in which he had said: "Every landlord knows that he cannot add the taxes to rents. If he could, he would not care how high taxes grew.