New-York tribune., 1922-02-12

! forced i'll a sense) tan forced indl-
rectly and usually unheknown to the
/ taxpayer.
''PMcking the Goose"
A cynical Minister Of Finance in
France once said: "rhc art of taxation
consists in plucAing from the goose the
largest amount Of feathers with the
least amount of souenling." In the
! present instance the geese are the
+ working and middle classes. and they
arc such geese as TO pluck out their
own feathers without realizing it. while
the cNnics are those OF the upper
classes who understand better what is
gong on and smile.
In other words, the great reasons
why imitation IL kept up IN Germany
are two: CD the rank and file Of the
party IN power do not know any bet
ter. and (2) many Of the party out Of
power do not want any better system.
1t may be true that the present xov-
ernment cannot levy directly all the
taxes necessary without making the
goose squcal so loudly that the govern
ment would be overthrown.
he point - be noted is that inf1a-
tlon is not in itself resource. 1t
can pay no deficit. except as it takes
something out of the real interest Of
the working middle classes. The irony
Of the situation is that, unless miracle
happens. the indemnity Will be paid
chiefly by the working people who did
not want the war, while the small class
OF rich nationalists who did want ii.
VIII success ssfully dodge their taxes
Imitation aside, Germany is tayed
about $40 per capita, as compared with
$50 for France and $50 for England.
hosc figures src worked out bv Il
French statistcian and were practicable
accepted by the Germans to whom |
submitted them. They take due ac-
count of the internal purchasing power
OF the mark. AS to the German inaa-
tlon tor the last two years. for every
mark from true ajes. there were ap-
parently about two and onehalf marks
OF deficit paid for by the people through
that species OF taxation called imitation.
lhc total OF both IS therefore over
three and half times the true taxes,
or about $50 per capita which is more
than tho French figure.
Between 1918 and 1921 taxes in
money increased approximately as fol-
lows: England. GA times; France, "a
times; Germany, 1915 times; but the
moneys had ngcd-that is, the price
levels had increased in England 1.S
.."''9' '"licc' o. tllneS, germany, l6
times; so that the real tax burden
found by dividing the former bv the
latter) was for England SO times:
France. ~ times, and Germany time.
IN other words. while England has
raised her real taxes over thrcefold
and France nearly twofold, Germany
has not raised hers practically at all.
But these figures are misleading il
imitation is left out Of the reckoning.
Ihls indirect tax applies only to
Germany and changes the German fig-
urc from 10 TO 49, or moro than that
Ior Franco and about the same as that
Tor England. Considering the fact
that Germany's total income has nm
doubtedly shrunk far more than Eng
lands, we may conclude that Germany
is probably the most heavily. as we'll
as the most unjustly, taxed of the
three. The reparations included in
Gcrmany's tax bill above recorded are
small; tor the reprtions pymcnts have
not yet started full blast. France.
while not initiating, has not balanced
its budget, either, but is borrowing
havlly against the future German rep
aratlons payments.
Probably, by the substitution Of
sound and equitable taxation for paper
money imitation, Germany could balance
its budget laslde from reparations) on
less than $50 per capita (reckoned not
by the foreign exchange. but bv inter-
mai purchasing power), i. G.. counting
the present mark not as per cent Of
Pre- war. but as 3 or 5 per cent. as
per tho previous table. IF Germany
should do this, her economic resources
would not be in ured, but helped and
helped greatly. through better adjust
ments and better justice
But what if the imposition Of these
taxes make the German government so
unpopular as to overthrow it? Alrcadv
as write. the "tax compromise" is be-.
fore the Rcichstag.
Sees Ta1 Increase.
In spite Of all the ignorance there
are some who know what Germanv's
real needs are and, besides. there is tho
pressure from the Allies for Germany
TO put her house in order. Some in
crease in taxes will doubtless come
about. But the labor group, to get the
votes and keep III power hay have 20
Keep on bearing the brunt OF the bur-
den or the struggle may disrupt Ger
many: What happens will depend
largely on the reparation..
am writing OIL Germany's monetary
problem, but Germany cannot we'll
stabilize her money until she balances
her budget. nor balance her budget
until she has greatly raised her taxes.
and her tax bill depends on the repara.
'ions payments more than on ANYTHING
else.
The reparations problem thus affects
as we'll as overshadows every other
economic problem in the world to-day.
Inc German contention is that she can
not pay so large sun. The French at.
'tude' II | interpret it rightly, is that
shc doesn't much care whether Ger
many can pay. But she must, and If
she doesn't therell be the devil ii nav.
Tho official English attitude is to side
with France. but unoffi icially there is. I
believe, general acceptance Of the
German contention.
K kevnes.s Loel-