New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-01

~ udlIoHdl property Suohlu contribute
to the new and heavy call weighing on
the budget
Effect Of New Taxes.
Thus the question arises. What will
he the incubus and the financial dis
relative 10 the increase in
these taxes?
The heavier fiscal needs Of the gov
eminent will have To be supplied partly
By n Bourse tax on market transac-
tions and partly by an increased in
come tax. The first will be simply
doubled and the Finance Minister eX-
poets to gain S2.OOOOoO thereby. The
income tax on personal property. at
the rate Of two cents per cent Is hoped
to bring In To the exchequer some ST.
sol $50. Some hnanciers think mat dou
bling IN" tax on stock market opera
lions is crushing overcharge. which
can be borne only with great incOn-
ycnience. on the other hand. the in
come tax has met with few protests.
though this can scarcely mean that
The second measure IL of a more harm
less nature than the first
The Bourse tax was established un-
der the law Of 1898 and afterward modi-
fed The present rate is Of two cents
per two hundred dollars, representing
the capital under negotiation. But in
he case ~ French rrntes the impost
h. reduced to one Genuine and quar-
ter "a nth Of a cent? per two hundred
dollars Of each sum invested. The tax
IS further reduced To an ininitesimal
fraction for contango i'm regard to
every sum 81 two hundred dollars To be
carried over. The fiscal liability is
slightly higher on other securities.
Spectators Unaffected.
The effect of these new fiscal duties
Is not likely to weigh much with cari-
ialists. for the quotations Of many Sc
,urltles vary from day TO day on he
Rourso bv hundreds of francs and even
IF dollars. \ Spectator would not be
deferred from buying bank stock that
AN rise sharply from one session to.
the next because Of duty represented
IN fractions. and thus the activity Of
he Paris financial market is not likely
10 suffer.
The outlook for an increase i'm the
official rates of brokerage operations is
much more serious. The Bourse FAX
has already been enlarged. IL vas
doubled i'm 1905. and these have oeen
.hc results. In 1907 this tax gave 10
he Treasury Sl.jjl. sl3. and the fol-
owing year. after the introduction Of
he new tax. the returns show S2.oSo-
III. In 1872 the total was S2,6Ol so.
Thus the doubling of the duty injured
neither French rentes nor the activity
II other stocks Nevertheless. last
year achieved record in the matter
II Bourse stagnation consequent IN
he grave Near Eastern crisis and the
Balkan war.
Much more serious than the doubling
lgain of the Bourse tax is the two
.cnt tax on personal property or in
,thcr words. stocks and shares. This
mpost Is calculated at I per cent on
he revenue of movable" values and
per cent on the redemption value Of
,tocks benehting by lottery premiums.
But the income derived from state
'unds and similar securities is not
ouched by the treasury (hsc).
The following example will serve To
,how the relative Importance of the
vo taxes. The holder of Credit Lyon
1ais shares. for instance. will pay year
Y 10 the fisc more than five cents on
dividend Of Sl3. where as the new
8ourse tax will entail an outlay OF
,nly four cents az the moment of par
'hase. Therefore, the additional tax
# two cents a coupon or dividend is
ar more onerOus than the small initial
8ourse tax on buying a security.
Some foreign bonds, such as Russian
'ais, issued on this market through
he medium of the big credit bauis. |
will. curiously enough, escape payment
# the revenue tax.