Norwich bulletin., 1920-12-14
Dr. MarCuSe Defends
 German Tax Laws
Tells American Investors in
 German Real Estate Why
 Expenses Exceed Income Economic Conditions Cause

Berlin, Dec. 1S.-(By The A. P)-Dr Paul Marcuse, a German authority on taxation, in an article contributed to a forthcoming issue of '.Trans-atlantic Trade" the official organ of the Amer lean Association of Commerce and Trade of Berlin, says the complaints of American investors in German real es- Tate that taxes and expenses on this property exceed the income by far is not due to the German tax laws but to the economic situation, which has gone from bad to worse -
 The association requested Dr. Marcuse to analyze the tax laws in view of re- ports published in the United States that American investors were being forced to pay taxes which not only exceeded the incomes but consumed a large ner- centage of the original investments. These reports caused considerable con- motion among Americans who were about to make heavy investments in Germany. according to Fred W. King, acting pres- ldent of the association, and several who had already invested millions of marks cabled for detailed information regard ing tax measures. The latter threaten ca not only to refuse to invest more, but to withdraw the money already invested
 Concerning real estate investments by Americans, which have run into the bill lion during the past two years, pr. Marcuse says:
 Be it remembered that while the German gold mark dropped from 23 cents to g Of cent, German real estate ken, It's value except for, say, 10 to 20 per cent depreciation for lack of repairs during the war. Thus, a house in Der. lin worth 100000 gold marks in 1914 was still worth about 150,000 gold marks III 1913 but the American investor, in. nf exrtr1r 95 f.5O0, bought a house as cheap as S2. 900 and he complains now that the in. vestment does not yield gold dollals.
 The depreciation of the German mark necessarily was followed by an in- crease of all prices, and the American investors who looked for the lowest pric, | Of the mark should have known that before long all prices necessarily wouIt be higher including those for plumbing i carpenter work, coal, janitors' salarie, and real estate taxes. So it may safel, 1 be stated that the disappointment O American investors in German real es tate is not due to the German tax laws but to the fact that the economic con dltlons of Germany has gone from bat l to worse This is a fact which of cours | cannot be pleasant to anybody who ha invested capital in German real estate stocks, bonds or business enterprises"
 The income taxes, which apply to al foreigners having resided in German, more than six months, exempt only salary up to 1,500 marks, the man re ceivin g100,000 marks a year being con, pelled to pay 23,625 marks. The lar takes more than fifty per cent of mil l lion mark yearly income and the per centage increases above 1,000,O00 marks These figures apPly to incomes from an
 source and country. but pr. Marcus points out that the German law provide 1 for treaties to be made with othe
 countries exempting an income derive
 from sources within such country on tn
 sole condition that similar exemption
 will be granted German citizens residin | irI the other countries"