Germany Faces Financial Problem

Manawatu Times, Volume 61, Issue 72, 26 March 1936, Page 12

Germany Faces Financial Problem

LEVIES ON ALL FORTUNES SUGGESTED. WAT OUT URGENTLY SOUGHT. The Budget deficit and the greatlyswollen current expenditure are pressing heavily upon the. German Treasury, which is anxiously seeking new resources, writes the Berlin correspondent of the Manchester Guardian. Taxation has recently been closely considered by the Finance and Economic Ministries, and a number of major proposals for bringing ia revenue have been thoroughly discussed, but they have not yet been ieoiaed upon. The most important of these—and the one most likely to be enforced —is a levy of 2 per cent, on all fortunes in money or property exceeding 20,000 marks (about £I7OO at tho present rates). This would amount to a form of additional income lax, sinco the great bulk of the people affected would not have to sell property or to raise loans to pay it. A tax of this kind could be collected easily by tho fiscal authorities. A further proposal is for a levy on profits resulting from the boom to industry given by the Nazi State —in other words, a levy on re-armament profits. This levy would present greater administrative difficulties than a levy on fortunes. Industrial profits have already been limited by the capital stock law, which takes part of them for a compulsory State loan; The loan increases the assets of the firm holding it; the levy would, of course, be a tax. It is also rumoured that a proposal is under consideration to divert to tho Treasury part of the funds of the Labour Front, the corporative organisation of employers and employed. The Labour Front is a very prosperous organisation. There are nearly .17,000,000 employed peoplo in Germany, almost all of whom contribute to tne Labour Front, which, in addition, has part of the funds of tho old suppressed trade unions. It is possible that a loan to the Treasury by the Labour Front rather than a levy is contemplated. The possibility of an increase in tobacco and beer duties has also been examihed. The need of finding new taxation has been made additionally urgent by the difficulty of raising loans. Of the only big public loan offered this year—the Reich Railway Loan in January—only

70 per cent., it is understood, was taken up by the public. Heavy loans were raised last year from the banks and from insurance companies, and it is nbt easy to squeeze them again. Further, a sum of £83,000,000 was levied upon industry last year.