Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-12-21
Suggestion by Socialist.


BERLIN. December 20. via London,
December 81, 2:22 am.-The socialist
resolution proposing a new levy of the
extraordinary defense tax imposed in
1915 was advocated in the reichstag
today by DR.. Eduard David, the social
lst leader, who suggested that this be
called the honor war tax" DR.. Da-
Vlds remarks were made during the
consideration of the governments bill
requiring corporations to accumulate
reserves available for taxation Of war
time profits. which was reported out of
committee with resolutions for addi-
tional legislation against undue war
profits.
Ihe discussion was opened by Dr.
Karl Helfferich, secretary of the i'm
perial treasury. who announced that
the next budget could not be balanced
without additional income. and that
proposals for new taxation were being
drafted for submission to the reichstae p
DR.. David criticised the financial policy
hitherto followed during the war of
financing war expenditures through
loans and demanded new taxation. He
suggested taking over armament in
nopolies for the purposes of additional
revenue.
Statement by DR.. Helfferich.
DR.. Helnerich. replying to DIR. David,
denied that the government had adopt
edS the loan method Of financing the
war as definite principle He said
that German financial experts were
convinced from the beginning that the
so-called British system of financing
the war by immediate taxation could
not succeed, but that this did not mean
that the taxation screw should not be
during the war.
DR.. Helfferich said that the govern
ment had only wished to spare the peo-
pie increased taxation so long as there
was no compelling necessity for it, and
was determined to refrain from higher
taxes SO long as the ordinary budget
could be balanced without them Hither-
to the government had been successful
in this, owing to the fact that the war
expenditures had been carried in the
extraordinary budget The budget OF
the first war year, he stated, had shown
a surplus of 220,O0O,00O marks, and the
present budget year would close either
without deficit, or with very modest
deficit.
The drafting of the budget of 1916
II will, however, be extraordinarily
difficult" said DR.. Helfferich. This
budget cannot be balanced without
new revenues. You may therefore
profit tax In the final form, but other
tax proposals now being worked out
will be submitted to you"
Says War Imposes Colossal Burden.
He declared that no matter how large
4 war indemnity was received the war
would impose colossal burden of tax
alton on the Germans, and they must
therefore. expect greatly increased tax
alton after the war.
Our financial policy during the war
g not hand to mouth one," the secre-
-ary said, but it is based on a sober
of all the facts and pos
'ibilities and particularly on the de-
nand that the productive energy of
he German nation shall be maintained
Is efficiently as possible during the
war
When the necessity behooves, how
ever, we, too. must dig down into our
pockets and German capital must then
produce money, not for S per cent
oans, but in the form of taxes bearing
10 interest"
German Tax System Equitable.
DR.. Helfferich argued that the Ger
nan tax system was more equitable
han the British, and. continuing, said:
Under all circumstances and regard
ess Of the height Of the war indemnity,
ipon which we naturally reckon, war
Will bring its train Of colossal tax bur
lens for us No one in Ger |
many expects after the war the same |
AK rate as before, but everybody de- |
,lares that we must hold out through |
,ut the war, cost what 1t may.
when the war is over and matters |
ire arranged German patriotism will |
,e shown not only in signatures to |
oans, but in the payments of taxes
Ne need such patriotism, and it is to
'e hoped that we will never falter
otherwise.