South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-11-30
Germany Plans TO Levy Tax On All Fortunes
of 10 to 90 Percent to Fill Golfers

the landowner the period is so
years Thus the levy becomes vir-
tually an additional income tax for
those particular periods.
DR. Helnerich. the ex-dnarce min
lister whose pre-war financial repu-
tation in this country was d deserved
ly high owing to his succe. Isful as
ISOLATION with the Deutscne bank. is
not. apparently. opposed 20 "A capital
levy as such, seeing that he suseest-
cd a scheme OF this description 20
the government early III 1915 when
ne was still finance minister The
details were actually worked out
but the matter was dropped on DR.
Helfferichs retirement in May Of
that year.
This hnancier, however. has some
strong cutic.sms TO offer on Herr
Erzbergcrs scheme. The measure Is
not definite ne says. on the point OF
how much viii have % be paid year
~ If the person taxed decides to pay
the levy by installments.
He reckOns that the payment Will
have TO be made to the extent Of
6.5O5 per cent. yearly 6 per cent.
for interest. and 1906 per cent. as
payment OF installments) as a fixed
amount for the whole period, or
10 per cent 6 per cent for in
terest, and 3 Id per cent as pay
ment for installments) at the begin
ming. with "a gradual decrease as the
/ years go on.
Difficulties That Arise.
/ In the case Of instruments for 30
years the payments would either be
/ q fixed yearly 5.4S per cent, or be-
gin with per cent. and gradually
+ decrease as instruments were paid.
DR. Helfferich points out that it
f would be comparatively easy 10 tax
/ anyone living on a fortune. say.
/ 800, 900 marks It would be a mat
/ ter Of comparative Indifference 10
/ such a person-whO would be liable
/ for a levy Of 100. 900 marks-whe-
\ Their he gave up 20 per cent OF his
/ capital, or 20 per cent of his in
/ come.
But a difficulty arises as 10 the
/ form Of payment, DR.. Helherich
| adds. Obviously, in such cases, pay
| ment could not be made in cash.
! We're that insisted on. such great
I masses of stocks would be thrown on
\ the market that a tremendous fall
! in their value would take place. The
+ government he declares should be
prepared simply to take over the
. taxed persons stocks to the amount
/ of what he has to pay.
/ When fortunes are, he proceeds,
sunk in land and i'm various COM
mercial and industrial enterprises.
\ the problem becomes, after all the
! losses of war and revolution, even
more serious. Such concerns would
/ be seriously affected. if not com
pletely ruined. If a considerable por-
+tiOn Of their capital were seized.
How The Levy Would Work.
! To make the state a shareholder
or a sleeping partner in such cases
/ would. he thinks. not be practical.
Even if a long term is fixed for pay
ment and considerable elasticity al
/ lowed in instruments and form OF
payment. he thinks the burden
would generally be too heavy for
large numbers Of concerns.
DR. Helfferich gives the following
! interesting example of how the levy
would work
Take two persons with a fortune
OF 100000 marks each. One is an
/ industrial capitalist whose fortune
/ yields 10 per cent. and the other a
/ landowner whose fortune brings in
only 1-2 per cent. Both have TO
/ pay 1873 per cent. of their fortunes.
I In the former case-it L. assumed
/ both are paying by instalments-the
! levy amounts TO 7.56 per cent. OF the
/ income; in the latter TO sos per
cent.
In the case of an income tax, the
amount 10 be paid would rise or fall
with the rise and fall Of income. but
in the case OF a capital levy paid by
/ instalments the AMOUNT TO be paid
remains the same, irrespective of
I the rise or fall OF income. It will
| be seen how seriously this state of
! affairs might effect commercial and
industrial concerns.
/ Where payment is made by install
! ments security has to be provided
I FOR the amount remaining due. In
the case of the bankruptcy OF a con-
/ Germ paying by instruments the state
I has preference as private creditor"
/ That means in German law that its
I claims would come before every
/ thing save charges for wages and
/ salaries due.
/ Payment I'm State stock.
The measure fixes certain govern