HOW GERMANS ARE TAXED.

Gisborne Times, Volume XXVIII, Issue 2731, 9 February 1910, Page 7

HOW GERMANS ARE TAXED.

A GERMAN FREETRADER’S

STATEMENT

A member of the German Reichstag, writing to the “Westminster Gazette” says:— As the result of the perverted ccon'omics of Germany the working classes suffer more deeply than any other. Their trade unions exhaust themselves in the struggle to gain some arrangement to meet the increased cost of tho necessities of life. It is becoming more difficult to attain this goal, for the cartels and other capitalist combines have grown so strong behind the walls of protective tariffs that in the face of the so-called “difficult industries,” wages agitations appear more and more hopeless. And yet the raising of revenue is a vital question for the working classes. During the year 1908 the price of home and imported l beasts and butchers’ meat, was increased by at least 300 million marks (a mark is equal to a shilling). The price of liome-' grown corn was increased by 403 million marks, and of imported corn by 213 million marks. In 1900 wheat cost 155.30 marks per 1000 kilos in Berlin, and 126.50 marks in London; in 1908 the prices were, in Berlin 211.20 marks and in London 150.20 marks. Similarly there is a serious increase in tho prices of necessities through the taxes on butter, cheese, eggs, fruit, honey, etc. In 1891 a kilogram of butter cost in Berlin 2.34 marks, and in J.9OS 2.64 marks. In Mannheim the prices were, in 1891 2.13 marks, and in 1908 2.59 marks. To these taxes, which can be chiefly traced to the influence of the landed proprietors, must be added the equally grievous revenue taxes, indirect impositions on material commodities. Germany has; besides, a salt tax, which brought in 59 million marks in the year 1907. A family of five persons is burdened witli the uayment of five marks a year by this tax, which weighs most heavily on the poon population, because the need of salt is the greater the less meat is consumed; but owing to the increased cost of meat, vegetarian food predominates amongst the working classes. To this must be added the high sugar duty,, which produces more than 150 million marks a year. In the year 1907 the beer duty produced 121 "million marks, without taking account of the high municipal impositions on beer. The duty on brandy produces about 150 million marks a year. The effect of the duty on petroleum of 6 marks per 100 kilograms is especially heavy and unjust. It produces yearty 77 million marks, increases flic cost of lighting by 63 per cent., and imposes on a working-clrss family the pay.ment of at least 6 marks a year. A working man with an income of between 800 and 1,200 marks pays, in indirect taxes on salt, sugar, coffee, petroleum, dripping, meat, conn tobacco, beer, and brandy, between 37 and 1 52 marks. Tlie so-called reform of tlio Imperial finance which was accepted by the Reichstag this summer after a long Parliamentary struggle brought yet fujiher burdens for the working classes. The worst of these is the raising of the duty on tobacco by about 43 million marks. There are about 200,000 men and women engaged in t.he tobacco industry. Their wages are pitiful. According to the official statistic’s their average wage is 601 marks a year. Only a small portion of them live in the larger towns. They are for the most part engaged in the country towns and villages. Home work, which saves the capitalists factory expenses, is common. The villages of tobacco workers are terrible breed-ing-grounds of tuberculosis. With these distressing wages the mode of living is low. The result of improper nourishment shows itself in the failing power to withstand the germs of phthisis. Seventy-five per cent, of tho tobacco workers are consumptive. Tho new taxes will have to be borne almost entirely by these workers. As the result of the increase in the duty there wasan immediate fall in the consumption of the cheaper kinds of cigars. At least 10,000 workers are already now out of employment. They are a dangerous reserve army for their comrades, and will vet further diminish in a short time the scanty job wages. The duty on beer Avas raised by 100 million marks. The consumption of beer is for millions of working-men an ineradicable necessary of life, as the cost of bread and meat have been unnaturally inflated by the poliev of protection. At the same time the duty on coffee has been raised from 40 to 60 marks per 2cAvt., and that on tea from 25 to 100 marks. An incomo of 37 million marks is anticipated from this source. The adulteration and increased cost of these beverages can only serve to augment alcoholism. The Avorking classes are compelled to drink substitutes for coffee, such as chicory or the so-called malt-coffee, which only recall coffee by their courtesy-title, and not bv their flavor. The oppressive sugar duty, Avhich the Government promised to diminish on April 1,1909, has been retained. It brings in annually 35 million marks. A duty on matches is estimated to bring in yearly 23 million marks. Formerly a packet of ten bpxes of matches cost retail at most 10 pfennig. Since October 1,1909, a dutv of 15 pfenning per packet must be paid so that it now costs at least 25 pfennig. As the manufacturers of matches have formed a ring the price has been yet further raised, so that, instead of 10 pfennig, 35 pfennig must be paid. At the same time a tax on incandescent lights to produce 20 million marks Avas decided upon. A mantle Avhich used to cost 20 pfennig retail uoav bears a tax of 10 pfennig—i.e., 50 per cent, of its Amlue. If Ave add to this the tax oil railway tickets of 22 million marks, the abrogation of Avhich Avas refused tho Conservative majority, there is a further grievous increased taxation of the Avorking classes. In summary, the folfoAving new burdens • have been added to the old indirect taxes by the so-called financial reforms :

Million marks. Increase on the beer duty 100 Increase on the brandy daity ... 80 Increase on the tobacco duty ... 43 Increase on the coffee and' tea duty 37 New duty on matches ... ... 23 NeAv duty on incandescent lighting 20 Retention of the sugar duty ... 35 338 The liberation of the German working classes depends on the liberation of German economics from the fetters of protection.