Evening star., 1916-02-27
War Profits of individuals and
Corporations Must Be
Divided With State.
INDIRECT MEASURES
ALSO ARE ANNOUNCED
Funds Will Be Used for Interest on
Debt, Due to Conflict, and
Other Deficits.

BERLIN. February 26.-Germany's
new expected taxation measures were
announced today by the government
They include taxes upon the war
profits Of individuals and corporations
and also indirect measures of taxation
No estimated yield on the taxation
Of war profits is given. The govern
ment, in fact, is unable to estimate the
sum to be derived because a large num-
Der of corporations have not yet sent
in their reports and only the toughest
guesses regarding the financial status
of individuals are possible.
The war profits measure is divided
into two sections. The section for in
dividuals takes the form OF a grad
uated tax on property increment be-
tween January l, 1914. and 1917. The
tax commences with per cent upon
the first 10000 marks. per cent upon
the next 10000 marks, and then rising
In successive stages to rs per cent on
increases over 100000 marks.
Ingenious subterfuge.
direct tax upon increased incomes
is avoided largely owing to objec-
tions, 1t is said, made by individual
states of the empire. in which the in
come tax is reserved, but by an inge-
NOUS subterfuge when an increase in the
amount of property is accompanied by
a correspondingly increased income,
mainly when property increment re-
ports hoardings from an increased In
come. the rate of taxation Is doubled.
1t is admitted that this will rebound
to the advantage of lavish spenders
who live up to their war profits, but
it is said that this is unavoidable.
Check on Tax Dodgers.
In order to checkmate various devices
of tax dodgers, it is provided that gifts
to children and others and money in.
vested abroad during the war must be
reported to the authorities.
individuals who have been putting
away their profits in jewelry, paintings
and other articles of art or luxury
which, as personal property. heretofore
have escaped taxation. must return
them at their purchase value. AS a
further measure against tax lodging,
persons moving out in the country or
fore the date of the collection, may be
forced to deposit with the authorities
enough to cover the tax. A jail penalty
is provided for offenders.
Corporation Tax.
The corporation tax on wartime
profits starts with 10 per cent on the
additional yearly profits made during
the war as compared with the average
ante-bellum profits. when this addi-
tional profit does not exceed 20 per
cent of the corporations capital stock.
1t rises to 80 per cent when the addi-'
tional profits exceed 20 per cent of the
capital.
Real war babies" with heavy war
profits are further hit by a provision
Increasing the rate of taxation when
the actual lot of increased profits ex-
ceeds 10 per cent on the capital stock.
This entails a 10 per cent surcharge to
the tax, the surcharge rising in gradu-
when the company is in a position to
declare profits of 80 per cent.
Large Contributions.
In this way a corporation whose in
creased profits during the war in a
year amounted to 20 per cent of its
amount to 80 per cent Of its capital,
will contribute to the treasury IS per
cent of its additional earnings.
Foreign corporations are to pay from
10 to IS per cent Of their additional
capital stock. gains of $4,000 marks
and under paying 10 per cent. The
high limit Of 45 per cent is reached
upon gains of more than 100000
marks.
Taxes Upon Tobacco.
The text of the measures concerning
indirect taxation is not published but
the government indicates that the tax
on tobacco can be. and will be- material
ly increased without bringing the bur-
den on tobacco users up to the level
prevailing either in Great Britain or
France The tobacco imposts in Ger
many during 1912 yielded 27s pfennigs
per capita of population. as compared
with 628 pfennigs IN England. and 76s
pfennigs in France.
The tax on cheap inland tobacco Will
be light compared with that on imported
tobacco. and there will be an increased
stamp tax on cigarettes.
The introduction of stamp tax on
acquittances Will be accompanied by a
law compelling the giving of receipts for
all except smaller payments, and by the
abolition of the stamp tax on checks.
The extent of the increases in the
postal. telephone and telegraph rates
Is not indicated.
General Explanation.
The tax on bills of lading will be
extended to include goods shipped in
less than carload lots and will include
parcels sent by parcel post.
In a general explanation. the Nord
Deutsche Allgemeine Zeitung points out
that the new measures are not intend
ed as a payment of the costs of the
war, which must be left until peace
times, but says they provide interest
charges on the war debt and make up
for other deficits in the ordinary budget
of the empire.