Tax Talk

For long, dreary days the Reichstag had listened, sometimes restlessly, to a deadly debate on taxation. The Deputies, bored to the verge of unconsciousness, became alert on the instant when Socialist Herr Braun accused Communist Herr Rosenberg of praising Caesar Augustus. What had Caesar to do with German taxation? Everybody was wide awake. Herr Braun reminded the Reichstag that Caesar Augustus had enforced capitalistic taxation, which he compared to the tax measures under monotonous discussion. "It was," said he, "out of place for a Communist to render homage to Caesar."

Herr Rosenberg retorted:

"It is easy to dishonor dead emperors; I leave all those, including William II, to the Socialist member, who I feel has no grounds to condemn a Communist for praising a Roman since he donned a frock coat to attend the Hindenburg inauguration."

Tax talk continued. Deputies slept. Some walked out of the Reichstag and quaffed beer, in the Tiergarten (park) or sat on the benches. So noticeable was the exodus that a Socialist rose to move that the session be moved to the Tiergarten or loud speakers loud enough to reach the innermost recesses of the park be installed. After a few days they were required to wake up, vote on the measures. They did, passing them by average majorities of 97.

Facing enormous burdens, placed upon the country by the Experts' Plan as well as by increased domestic needs, the Government sought to raise an extra 7,000,000,000 gold marks by taxation. To do this the most thoroughgoing reform was necessary.

Tariff reform and tax reform went hand in hand. Said Chancellor Luther:

"Germany certainly has no desire for the development of European economic life on the basis of high tariff. Germany, however, cannot go the way of general tariff reduction or even the entire removal of tariff barriers which perhaps alone would be sufficient to afford relief from the world's distress, as long as other countries which confront us with far greater economic and political power maintain a decided system of protective tariffs.

"The duty-free importation af considerable quantities of frozen meat constitutes an alleviative measure for the consumers. In the case of grain, the tariff is of a transitory nature and is considerably lower than the tariffs of pre-War times."

Communists raised a tumult, called the Chancellor a "tax robber" amid wild cheers, boos, growls. Under threat of police intervention they cooled. Quiet was restored.