The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-08-09
PRUss1AN INCOME TAX.

State Department the following statis-
tics upon the Prussian Income Tax
and its assessment in 1901. The fact
that the officials of the embassy have
given their time to the collection of
these data, and that the State Depart
nent has published them, shows that
there is a desire to know about the
working of this tax by leading Ameri-
can statesmen. There is a wide differ
ence between the statesman aud the
politician. In Minister White we have
the statesman.
The law under which the Prussian In
come Tax is levied went into effect
June "a, 1891. Roughly speaking, all IN
comes of more than 800 marks ($2l42O)
a year are taxed. Incomes from 800
marks up to 10000 marks $C2142O up to
$2,499) are divided into twenty-six
classes, the tax rising from 6 marks
($1.43) annually for the lowest class to
800 marks (S71.4O) for the last. Incomes
of more than 10000 marks ($2, 49O are
taxed upon a special and more rapidly
progressive scale. Under the applica-
ton of The law, the number of persons
liable to taxation has continually risen,
and, except during the second and third
years, the amounts yielded by it to the
State have also steadily increased. By
a law passed July ?, 1900, this law was
extended to the so-called "Hohenzoll-
lern lands" in South Germany, SO that
it now affects the whole Kingdom of
Prussia, with the eXceptio nof the ISL
and of HelgolaHd. According to she
census Of 1890, the population of Prus-
STA was then in round numbers q, $780,
900; according to the census of 1900, it
had risen to 34,4OO, OOO-an increase of
over 10 per cent During the decade 1892
1901, the Income tax statistics show in
crease.
In 1901, the total population liable to
the tax was S,G49,lSS; the total value of
their incomes liable to the tax was s.
S54,1S2 POI marks ($2,1O7 ,295, 37S), and the
total amount of the income tax was
1856, lSo6S4 marks C44,479,5OO. As
against the statistics for 1892, the num-
Der of those liable to the tax showed
an increase of 1859 per cent? an in
crease Of 1.9S per cent as against 1900;
the amount of income, an increase Of
1883 per cent can increase of 7.34 per
cent as against 1900; and the amount
of the income tax, 49, per cent tan in
crease Of III per cent as against 1900.
In 1901, the number OF "nonphysicaI"
persons i e., corporations. atc-liable
TO the income tax was 266l with in
comes liable to the tax Of 47S,124,4 S3
marks ($ll3, SD, paying an amount
of lS,I6l,5S4 marks $44652 5O. The
number of physical persons liable was
1856, 527, with incomes liable to the tax
of S,3t6 G57, rs marks C$l,J93, sol ,75D, OF
which 5,S561OO0OO marks Isl 1893, 75l, 500
came from towns and 2,519, $50, 900
marks ($599, 74S,1OO) from the country.
1t will he noticed from the above that
while the population of Prussia has in
creased during the last decade to the
amount of, roughly, 10 per cent, the
number of persons liable to the income
tax has increased over 40 per cent.
While the total of their incomes has
risen i'm about the same proportion, the
average of their incomes has diminish
ed, the diminution since 1900 being "A
marks ($5.7D. This shows clearly that
the number and amount of the smaller
incomes have increased in greater pro-
portion than those of the larger ones.
An example of this increase is the num-
Der of persons having incomes of more
than 5000 marks ($7lD, which since 1900
has risen per cent-from $500 to
1876, 700
1t will be noted that this is a pro-
gressive income tax. Comparing with
our own tax we have to take into con-
sideration the purchasing value of mon
ey here, to the purchasing value Of
money there. An income of $2142O in
Prussia has probably a purchasing of
twice and it may be of three times the
amount here. Allowing that money
has twice the purchasing power, an in
come of $42S.40 paid a tax of $2.S6 I'm
der our system a man with an income
of 81, 900 is exempt from income tax,
but the ordinary ,aborer at $40 a month
here has had to pay So a year for his
road, poll and school tax, a very much
higher rate than the Prussian Iaborer
has to pay. Our income tax law is
open to much criticism, but if it can
hold water against Tom Fitch's attack
it will probably remain our main tax,
though the law may be subject to many
notifications. Unfortunately it can
never be made progressive, and yet
progressive taxation is in theory a
proper and wise measure for justice in
taxation.
FORESTS.
A recent report upon the forests of