English Translation

318 -4- may be that the burden of income tax is lower there alone than in the Protectorate. The property tax and the transfer transfer have its reason there that the property there is not affected by other taxes. In protectorate however, the property is already taxed and by e.g. by the so-called fee equivalent and dirch the minimum tax. In addition, the net capital income is affected by the pension tax, which is unknown in the Old Reich. In particular, one has to mention: a/ Citizen's tax. It is, as already mentioned by the Secretary of State for Finance, Reinhardt, an "asocial tax and remnants of the old regime". It is raised on account of municipal finances. It affects physical persons, in particular the remuneration, thereby reducing the real wage and thus favouring efforts to increase the wage level and thus also the price level. Where citizens are not paid by the employer for his employee, it increases the cost of production and thus, finally, the price level itself. The work associated with the increase and the otherwise caused rest in the price level speak against the expediency of the introduction of this tax. b/ and c/: wealth tax, transfer transfer. We have already stated that the property is taxed in a different way in the protectorate.