TO MEET GERMANY’S REPARATION CALLS

Manawatu Times, Volume LIV, Issue 6812, 16 January 1929, Page 7

TO MEET GERMANY’S REPARATION CALLS

Increasing Taxation

GOVERNMENT MEETS STORM

OF OPPOSITION

United Press Association —By Liectri* Telegraph—Copyright. Received Tuesday, 7 p.m. BERLIN, Jan. 15.

Cabinet is considering Dr. Hilt erdiug’s proposals to cover the Budget deficit of 500,000,000 marks partly due to increased reparations payment of 300,000,000 marks. Dr. liilfcrding plans to increase the beer tax to the extent of 165,000,000, spirits bv 90,000,000, the capital tax by 104,000,000, the succession duty by 20,000,000 and post office contribution by 26,000,000. He proposes to hold back payments to State communes to the extent of 120,000,000. Most of the proposals will meet serious opposition. The Bavarian people’s party threatens to withdraw its representatives from the Cabinet if tho beer tax is increased. The States arc opposing the with-holding of revenues though Parker Gilbert criticised the present methods of assigning them. Cabinet is expected to spend a week discussing a means of compromise with 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.