The Essence of Natural Rent and the Implementation of the Principles of Rental Taxation in the Interests of Increasing the Stimulating Effect of the Tax Mechanism and Strengthening the Economic Security of the State

The article analyzes and develops the theoretical views on the category of natural rent in the works of Adam Smith (income exceeding all reasonable costs plus the average profit typical for a given area), David Ricardo (income from the initial and indestructible forces of the soil, the other part of it is paid for the use of capital that was used to improve the quality of the soil and for the construction of buildings), and other economists from land rent (income due to differences in the location and fertility of land) to differential rent II (rental income from additional capital investments) and quasi-rent (rent of machines and equipment), etc. David Ricardo formulated the conditions for the formation and receipt of land rent (lands differ in their location and in their fertility; the number and area of plots that are best in terms of these parameters are limited; lands are privately owned). In turn, Alfred Marshall noted that land rent does not appear as an exclusive phenomenon, but only as one of income sources, among similar ones. In modern conditions, the understanding of rental income is reduced to its interpretation as a profit above the average normal level, that is, excess profit. However, when considering rent as excess profit, the determination of its size is based on a comparison of indicators such as actual and normal profitability rather than land fertility or differences in the depth of occurrence and other natural mining conditions compared with the worst land plot or deposit, and also minerals. The location of land plots, as one of the factors of land productivity affecting land rent, laid the foundation for research in the field of the theory of the location of productive forces. Therefore, in relation to natural (mining) rent, it is necessary to be guided by the classical understanding of it, as income due to objective differences in natural or climatic conditions of agricultural production or subsoil use in comparison with the trailing land plot or deposit. In these conditions, receiving natural rent as income independent of the efforts of the subsoil user (excessive/unearned profit) in favor of the owner of the subsoil, the state, increases the stimulating effect of the tax mechanism in agriculture and the extractive sector of the economy, the efficiency of production and the economy as a whole, and strengthens the national and economic security of the state.

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