GERMAN BUDGET

Hawera Star, Volume XLVIII, 16 January 1929, Page 5

GERMAN BUDGET

SHOWS HEAVY DEFICIT.

INCREASED TAXES PROPOSED. MANY-SIDED OPPOSITION. United Presn Association —By Electric TelegrapiCopyright.) (Australian Press Association.) BERLIN, Jail. 14. Cabinet is considering Herr Hilxerding’s proposals to cover the Budget deficit of 0U0,C00,000 marks, partly due t-cutlie increased reparations payment of 300,000,000 marks. Herr Hilferding plans to increase the beer tax to the extent of 165,000,000 marks, spirits tax by 90,000,000 marks, capital tax by 104,000,000 marks, succession duty by 20,000,000 marks, and the post office contribution by- 26,000,000 marks. He proposes to hold back payments to states and communes to the extent of 120,000,000 marks. Most of the proposals will meet with serious opposition. The Bavarian People’s Party threatens to withdraw its representatives from the Cabinet if the beer tax is increased. The states are opposing the withholding of revenues, though Mr. Parker Gilbert criticised the present methods of assigning them. Cabinet is expected to spend a week in discussion of means of compromise in view of the many-sided opposition. Criticism has already been heard that increased taxation may lead the outside world to over-estimate Germany’s capacity to pay reparations.