The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-12-14
SWISS TAX SYSTEM
PURSUING POLICY OF PUB
Lie OWNERSHIP.
Graduated Tax on Incomes Is Imposed,
and Laws Are Enforced With
out Partially.

consul-G General S. c.. Mcfarland. writing
from ST. Gall. thus outlines the Swiss tax
alton system:
Railroads are treated as other stock cor
porations, under an intricate system which
aims at exact valuation of real property
where located, for general property (ver-
nogen) taxation, including paid-up capital
and reserve funds; and, for income pur-
poses, the application of this tax to earn
ing stock wherever it may be possessed.
To arrive at just conclusions, cantonal tax
commissions, or State assessors as they
would be called in the United States, IRE
given extraordinary powers al to the tn
vestigatlon of corporation as well as of all
other business. They demand books anu
require the appearance and testimony of
corporation officials when necessary. SO
that the furthermost DETAILS OF railroad
operation and OF stock corporations gener-
ally-investment, operating expenses, gross
and net profits, Indebtedness, Individual
holdings of stock, salaries uor income pur-
bposes), etc.-are clearly shown, and then
the details of the law, as hereafter ex-
planned, are applied.
The Swiss government is pursuing the
i policy or ra1irOHu OWnefSulp, pFepdFdliOb
for which was made by the insertion In
/ franchises of clauses providing for the
option OF valuation and purchase by the
government at specified periods. Under
the pursuance of this policy the govern
ment now owns and operates some 2,469
kilometers (%lxilometer, SO mile, of main
line, broad-gauge service, as against about
903 kilometers still in the hands OF pr1-
vate corporations, Narrow-gauge roads,
aar rtfYo rona and gfraAf and suburban
lines. using different motive power, n
of which there are a large number In
Switzerland, are largely in private. mu-
nicipal or district hands. All railroads
not owned by the government are under
strict regulation as to rates, running OF
trains, advisable improvements. etc. Tax
rates vary throughout Switzerland In the
difrerent cantons or States much as they
do in the United States. For convenience,
values will be stated in francs franc, 1873
cents). and the different principal and
direct taxes are as foiiows:
The Vermogen or general property tax
covers real property. moneys. ETC., but not
household effects, and is graduated accord
ing to amount of property owned. Up TO
a value OF 1000 francs property Is free,
from 1000 to 100, 900 francs the rate is -
francs per 1000. gradually rising on each
100. 900 to 1000, 600 and over, when 1t IS 80
francs. This is a cantonal tax. Similar
graduated taxes are separately collected
for CITY. school and church (Protestant)
pnrnoses. aggregating TAT francs per thou
sand. Widows and orphans. however, are
taxed but one-half OF the foregoing rates
on nronerty up to 10000; from e0,OW TO
1ao on three-fourths and above the latter
ap,re the full rate. The tax commission
has authority, after full investigation, 10
lower the property taxes of people un-
able to work, OF miners, Of single women
etc. within certain limits.
There are four separate income taxes
canton, city, school and church. Inc
cantona1 rate is 0.g6 franc per 100 on in
con,er from 100 to 1000, gradually risins
10 IA francs per 100 or 14,1W or more, and
q a similar graduated tax for city, school
and church purposes at rates hereafter
snecided. Variations are: Single men
ION francs free; married men with three
children, 1,2O0 free: with more than three
children, 1850 free.
The house tax is 0.25 franc or each LOCO
of insurance carried, and goes to the city.
From 1 to 3 francs Is the tax per 1,OOO
Of obligatory insurance carried, accord
ing to class of policy, this also going TO
the city. Up to 10000 francs no one has
TO nay OH his household and personal ell
fects; above that amount, on one-half the
excess a total tax of s francs per i,Voo y
equally divided between city, school and
church. Every male of 20 or over must
pay yearly a head or poll tax OF l franc,
which goes to the canton.
All Of the foregoing taxes must be paid
by every citizen II his property and in
come bring him within the specifications
as to those taxes. Many, through physi-
cal disability or otherwise, escape mill
tary service. For such persons a military
tax, going TO the government, is provided
(a) personal tax, age between 20 and 81, 6
francs; between IS and A, 3 francs; OBJ
property tax of 1.5 francs per 1000; (c)
income tax-600 francs free, and above
that, between the ages OF 20 and 81, Id
francs per 1000, and between the ages Of
35 and a, OTIS franc. Should he receive an
inheritance. one-half OF the amount is
taxable at the same rate for the same pur-
pose.
On inheritances there is also a graduated
tax. Estates left to wife, husband. pa
rents or children are free up TO 10000 francs
and above that they are taxed one-half of
/ per cent: to brothers or sisters 2 per
cent. on the full amount. and to more-dis-
tant relatives or others 5 per cent. on
the full amount. The beneficiary must also
pay ! per cent. of the full amount re-
eeived. Exceptions are requests up to 1000
francs TO servants or employees, free; to
churches or public institutions, absolutely
free. This is a c%antonal tax.
The total income tax is 1,S5b.56 francs.
| i nus lui It u inACn Oh bOAh DLbRGlt ~
and income of 4,06S. 80 francs. Next he must
add his house tax of 27.5 at the rate of 0.25
per LOCO francs lin his case 100 1000 franc
real estate and 1900 francs homestead, less
10000 francs ground v~aule), a poll tax of 1
franc, and, not being 10 the military serv-
ice, 4d7.15 francs-a total of 4,54S. SO francs,
or, in round figures, about 500, on a prop
crty Of So, 400 and an income OF $3.50, not
including what he might have to pay for
household effects.
Official commissioners investigate his bus
mess; his most private books must be dis
closed, actual valuation is arrived at, and
no property or income is likely TO escape
the assessors. He must also pay stamp
duties on bank checks, drafts and instru-
ments Of record; licenses must be secured to
shoot or fish, and in many minor ways ad-
ditional indirect taxation is levied, The
tax laws, as well as all others, are rigidly
and impartially enforced In switzerland.