Cost of living in German towns

Bibliographic data

Monograph

Identifikator:: 866449027

URN:: urn:nbn:de:zbw-retromon-93831

Document type:: Monograph

Title:: Cost of living in German towns

Place of publication:: London

Publisher:: Stat. Off.

Year of publication:: 1908

Scope:: 1 Online-Ressource (LXI, 548 Seiten)

Collection:: Economics Books

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XVll the other states of the German Empire have adopted, in this connexion, very much the same system as Prussia, it will suffice to indicate in detail only the methods adopted in that country. There the principal sources of municipal revenue—other than the proceeds of municipal enterprise—are the income tax, the land and building tax, the trade or occupation tax (Gewerbesteuer), and the tax levied on the sale of real estate ; the first three of these are general, and the last is rapidly coming into favour. Other taxes of secondary importance are levied upon dogs, upon entertainments, and upon beer in the form of a con sumption tax ; but these are not universal. Several towns have of recent years adopted an “ increased value ” or " unearned increment ” tax. But the income tax remains the most important source of revenue, and it is the only direct tax which falls everywhere upon the working classes, since it is payable by all citizecs in receipt of more than a specified income, whether they are householders or not. The municipal income tax is a percentage of the State Income Tax, varying from town to town and from year to year according to local needs, and is based on the assessment made for the state. The State Income Tax, as fixed by a law of the year 1891, falls on all incomes, whatever their source, exceeding 900 marks, or £45 a year, and is levied according to a sliding scale of which the first ten stages are shown in the following Table :— Annual Income. Over £45 „ £52 10s. » £60 „ £67 10s. ,, £75 „ £82 10s. » £90 „ £105 ,, £120 „ £135 to £52 10s. inclusive „ £60 „ £67 10s. „ „ £75 ,, £82 „ £90 „ £105 „ £120 „ £135 „ £150 Annual State Income Tax. £ s. 0 6 0 9 0 12 0 16 1 6 11 16 2 12 The tax is thus progressive, amounting to 0 66 per cent, on the lowest incomes and rising gradually to T7 per cent, on £150. It then rises gradually to 3 per cent, on incomes of £500, and to a maximum of 4 per cent, on incomes of over £5,000. Assessment is by “ households,” that is, the incomes of husband, wife, children and other dependents are added together and taxed on the total ; but the incomes of wives living permanently apart from their husbands are assessed separately, as are also such incomes of children and other members of the household as are not at the disposal of the head of the household. Certain deductions are made before the taxable income is arrived at, chiefly of contribu tions to sickness, accident and old age insurance, and to widows’, orphans’ and pension funds, and life insurance premiums up to £30. Further, in the case of incomes not exceeding £.150, £2 10s. is exempted from taxation for every member of the family under 14 years of age not assessed independently, and where there are three or more such persons in a household there* must be a reduction by at least one group in the schedule of income groups. In the case of income not exceeding £475, extraordinary obligations in regard to the support and education of children and relatives, chronic sickness, debt or other misfortunes may justify a reduction by at most three groups. The percentage addition to the State Income Tax levied by the local authori ties in Prussia varies considerably. In Berlin it has been for some years 100 per cent., but elsewhere it is generally much higher ; at the date of the Board of Trade Enquiry it was 135 per cent, at Aachen and 136 per cent, at Breslau, whilst in Bochum it was 160 per cent., in Barmen, Elberfeld, Essen, Dortmund and Königsberg 200 per cent., in Solingen 215 per cent., and in Remscheid 230 per cent. Taking 150 per cent, as a normal amount, a workman whose net income (i.e., after the above-specified deductions had been made), either alone or with his family, was 30s. a week would pay (as having an income of between £75 and £82 10s.) a total income tax of £2 12s. 6c?., viz., £l Is. to the State, 29088 e

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