GERMAN TAXATION

Gisborne Herald, Volume LXVI, Issue 20123, 18 December 1939, Page 6

GERMAN TAXATION

HIGHEST IN WORLD HEAVIEST BORROWING AMERICAN ANALYSIS (Klee. Tel. Copyright—United Press Assn.) (liritixli Ol'iieiul Wireless.) Reed. 9 tun RUGBY. Dec. 16. The weekly jour net. Economist, reproduces with comment figures from an interesting analysis of the comparative taxation in some of the principal countries of the world, published by the National Industries. Conference Board of New York. In the present circumstances attention naturally focuses on me position in Britain and Germany respectively The figures show that white taxation per head of population has risen in Britain i'rcm 25.8 dollars before the Great War to 107.8 dollars in 1928. in Germany the burden has increased from 14.3 dollars to 109.7 in the same period. While the rate in British taxation must be considered in relation to the interest payments of the vast national debt incurred in the Great War. a similar consideration does not apply in the case of Germany, whose prewar and war-time internal indebtedness was practically extinguished in inflation. This fact is reflected in the figures for national indebtedness per head of population in 1928 —Britain 10.014.0 dollars, Germany 192 dollars.

Even more significant are the figures of taxation taken as a percentage of national income. For the United Kingdom before the Great War the percentage was 11.1 and this had increased by 1938 to 21.7. But in Germany where in 1913 the percentage was only 8.9, Nazi war preparations had carried it by 1938 to 26.2.

The Industrial Conference Board's analysis indicates that the per capita taxation and the proportion of national income taken in taxation are highest in Germany. Moreover, as the Economist points out. “these figures do not show the actual proportion of national income appropriated hy the Government for they do not allow tor borrowing, which was also probably the highest per head of population in Germany last year.’’