The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-09-27

That says Schaefer. Is normal, in
evitable expenditures. assuming the ar
ments craze continues after the war.
How Is it to be met? The answer is
that 1t cannot be met owing to politi-
cal obstacles. and to the exhaustion
OF most resources of direct and indi-
rect taxation. The position of Eng
lard and Germany are here represent
tative. England and Germany are at
opposite poles in the taxation category.
England's finances are based largely
on direct property taxes and on luxu-
RES whereas Germans revenues come
from indirect taxes on necessaries.
Counting state and imperial taxes. Ger
many raises only 30 per cent from di-
rect taxes and 20 from indirect, where
as England raises AS per cent from u
rect and So from indirect. Germany
aud England here move apart. for 40
Years ago England got only 20 per cent
OF her revenues from direct taxes.
whereas Germany then got 35 per cent.
Political reason prevent England in
creasing her Indirect taxes-the pro-
tectionist plan to tax meat and bread
mas been practically abandoned In
Germany. the Prussian conserva tiyes
who stand behind, and above the imper-
ial government, prevent the increasing
of direct taxes on property
Both states are at their wits ends
for money to finance the war Eng
lard has piled on property taxes so
hard that she cannot levy any more
without complete confiscation Since
1892 she has increased her income tax
yield from S67, 500. coo to s226.000 600
and her legacy and succession duty
from S44,000,000 to s12S,000.0O0 The
British estate duty is the highest In
Europe; In 1894 the maximum figure
was per cent; in 1909 Lloyd George
raised 1t to 8. and now in 1914 to 20
per cent The maximum legacy duty
has been raised TO 80 per cent, so that
fairly near relative (for instance an
uncle) who inherits s5.000,000 pays
practically third In tax. Germany
raises from her legacy duty only s12,-
100000; We're 1T not for the obduracy
of the conservatives she could raise
four times more. England has got
to the end of her direct taxation re-
serves She further cannot materially
increase her heavy indirect taxes on
spirits and tobacco. She imposes a tax
alcohol, whereas Germany imposes only
a quarter of that sum. France third
and Italy less than half.
specifically regarded Germany has
splendid war taxation reserves. Up to
1eG6 she had no property taxes at all
and the legacy duty passed by Treasury
Secrtary Stengel in that year was a
fleabite compared with Lloyd George $
taxes. Germanys first real property
tax was passed in 1913 in the shape
OF a property inclement impost. Once
every three years the total real and
personal property of the citizens is as
sessed and any increases in value ex-
ceeding $4,000 has to pay a tax, vary
Ing according to the amount of the in
crease from 0.75 per cent to 1.5 per
cent. This impost leaves the initial
capital value of property untaxed. AL
together Germany's taxes as stated by
Secretary DR.. Kuhn to the Reichstag
in 1918. work out at only SIS head
whereas the Englishman pays s21 and
the F'renchman $19. These figures are
given to prove that Germans can easily
bear more taxation, but they are de-
iusive; in reality the German is heav-
Ter taxed than the Englshman, and the
taxation reserve for emergencies is
smaller in Germany, This is because the
government counts as taxes only such
Indirect taxes as actually pass into
the treasury, and ignores the fact that
the import duties which the govern
ment collects on imports send up the
price of goods produced at home. Only
a fraction of Germany's taxation thus
goes into the treasury the rest filling
tho pockets of protected interests. Prof
Bretano the Munich economist. works
this out. He shows that In 1909 $685.
100000 of the increased price of bread
went into agrarian pockets and only
se6.O0o.000 to the state. Every German