New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-08
FRENCH INCOME TAX.
Nee Measure Expected to Tighten
Weight on Land and Labor.

Paris, Feb. THE governments new scheme
for taxation, introduced in the Chamber of
Deputies to-day created a great stir. If enacted
it will constitute a complete readjustment of
Frances fiscal system
The burdens placed upon foreign securities,
both private and governmental are Onerous'
and constitute 4 particularly heavy blow TO
Russian securities, of which it is estimated that
from eight to ten milliards held in France.
This new income tax measure is one OF the
radical reforms TO which the Clemenccau min
istry committed itself 1t was submitted for the
approval Of NJ Jaures the Socialist leader and
while it Is received with unbounded joy by the
sOcialstic groups a proper shifting of the
burden OF taxation to the shoulders Of the idle
rich" ii is sure to encounter intense opposition
from the more moderate Republicans. we'll as
from the conservative parties.
The measure is a combination of the sys-
TEN of direct taxation upon incomes from what
ever source. supplemented by a progressive
general tax ranging from one-1fth of / per cent
to per cent on total incomes in excess of $1,000,
from various sources, divided into three CateGo-
rIes. rs follows: Real and personal property 4
per cent; commercial and industrial property,
31a per cent; pay for labor salaries per cent.
Foreign stocks will have access to the French
market upon the payment Of stamp tax of
per cent their nominal value. and per cent
upon the revenue they yield. The measure
makes no distinction between foreign stocks and
foreign government securities. Revenues from
the first category are assessabIe by the COM
muncs; from the second. by the fiscal agents.
and from the third by the declara tons of the
taxpayers.
The exemptions for laborers are fixed accord
ing TO the population. from / $50 francs in the
smaller communes to $500 In the towns.
French rentes nOminGlly eXempt-that is
to say. the coupons are not taxed but the
derived therefrom is taxable in general
incomes. Exemption from taxation in the case
OF incomes just over $1,000 is allowed where
several members of a family labor in order to
earn that amount.
In order 10 prevent fraudulent returns the
government inspectors are permitted to examine
the books Of banking houses large and small.
amount involved may be levied where fraud is
discovered.
In presenting the measure NJ Cailaux
Minister Of Finance. said that practically every
country had changed its fiscal system so as to
reach the real sources of revenue and the time
had come when France must follow suit. Mel
Their the British the German system. how
ever, was suitable. and the government was
prepared 10 present a measure TO replace the
Anticipated system with one which would more
Justly distribute the burdens. Generally speak
ing, the minister added, the measure would
tighten the taxes upon land and also upon those
who work and II would maintain the equilibrium
Of the budget by forcing acquired wealth 10 pay
a larger proportion OF the taxes. He estimated
that the progressive tax affecting incomes in
excess Of $1,000 would produce S24,OOOO00.