El Paso herald. (El Paso, Tex.) 1901-1931, 1910-08-24
THE INEQUALITY OF CERMANY'S
SYSTEM OF TAXATION.
XX.-THE GERMAN ADVANCE.

ERLIN, Germany, Aug. 24.-The
German people are crying out In
painful protest against the ever
I increasing burden of taxation imposed
upon them by the imperialistic policy OF
their government. The political con-
rrol of the nation is in the hands of the
property-oWnlng classes who heartily
support the world empire campaign in
itiated by their emperor They are
willing to instruct their deputies n the
federal reichstag and in the several
state diets to vote the necessary taxes
to maintain Germany's magnificent
army, to build a German navy which
will challenge the power of Britain, and
to carry on the German program of ag-
gressive diplomacy In the near east
The property owning classes vote these
taxes with fervOT of patriotic devotion
which would be sublime if il were not
for the fact that they vote these taxes
altogether upon the industrial classes
and not upon themselves. 1t is just the
same thing that exists in Great Britain
where the tory land-OWning party is
most insistet upon big expenditures
for a bigger navy, but is wholly IN
willing to contribute toward paying the
bills. In England Mr.. Lloyd-George,
for the time at least has forced a small
measure of the taxation upon the prop
erty-hOlding classes, but in Germany
lAACS SliA1 nave COLllplcle cOHITO- OF the
governmental machinery and therefore
they have protected property and have
placed the burden upon industry.
Indirect Taxation
As in the United States the revenues
OF the federal government of Germany
are derived from indirect taxation, and
the state governments raise money by
means of direct taxes. The imperial
revenue is derived from customs and
excise duties and from the profits de-
rived from the comparatively few i'm
perially owned productive enterprises.
In the states the direct taxes, for the
most part, are levied in the form Of
income taxes. The system differs from
that of the American union in that the
federal revenues are not sufficient to
meet the requirements of the imperial
government, and the deficit is made up
by matricular contributions levied upon
each of the states in proportion to pop
ulation. !
Two Taxation Methods.
When the empire was formed there
were two propositions for raising i'm
perial revenues. One proposed to give
the federation the power of direct taxa
ton; the other proposed a system of
federal support by which all the ex-
penses Of the imperial government were
to be contributed by the several states
In proportion to population Bismarck
was opposed to both OF these plans, yet
he was not willing entirely 10 exclude
either from the constitution He said
that the United States had wisely
placed its federal government upon the
basis of indirect taxation. after the
failure of a system of state
support Following the example of the
United States and OF the federal re-
public of Switzerland. Bismarck pro-
vided for indirect taxation 20 meet fed !
eral expenditures, but left the power Of |
direct taxation with the federal gov
eminent to be levied in proportion to /
population, just exactly as the right TO |
levy direct taxes was left in the con-
Of the United States.