FOREST TAXATION IN THE UNITED STATES 483 
The permanent taxes corresponding to the American property tax 
amounted to 137 RM ($32.60), or 7 RM per hectare ($0.65 per acre). 
These taxes were 6 percent of the net income of 2 220 RM ($529), or 
0.6 percent of the assessed value of 21,400 RM ($5,100). 
EFFECT OF TAXATION ON THE PRACTICE OF FORESTRY 
The tax rate on those individual German forests studied appears to 
be about the same as the ordinary rate prevalent in the United States; 
it ranges from 0.9 to 1. 7 percent and, if the examples studied by the 
union of forest owners’ associations are any indication of average con- 
ditions, the average tax rate is about 1.4 percent. The ratio of taxes to 
net income before taxes, however, appears to be somewhat lower for the 
German forests than for those of the United States. Although no 
direct comparison is possible because of the lack of data on net income 
from the practice of forestry in the United States the ratios of taxes to 
net income before taxes throughout complete income cycles (tax 
ratios) have been calculated for hypothetical examples based on 
American conditions. (See pt. 7.) Such tax ratios range from 50 to 
90 percent. The examples which have been given for privately owned 
forests of Germany show a range of 31 to 70 percent in ratios of taxes 
to net income before taxes. These ratios, since they relate to annual 
sustained-yield forests, and were calculated for periods when the 
income appeared to be normal, may be considered as roughly com- 
parable with the tax ratios calculated for American conditions. It 
has also been shown that the average ratio of taxes to net income in 
1929-30 for the forest properties studied by the German union of 
forest owners’ associations is about 50 percent. These figures appear 
to indicate a lower property tax burden on forestry in Germany than 
in the United States, which may be ascribed to the fact that the 
German examples are all drawn from the larger forests which are 
managed on a sustained-yield basis. The American examples are 
based on deferred-yield conditions, because of the preponderance of 
that type of management in the United States at the present time. 
But the ratios of taxes to net income for the German forests studied 
are much higher than for the agricultural properties in Germany for 
which data are available and higher than for industries in the United 
States other than forestry, agriculture, and mining. (See pt. 7.) 
Thus it appears that the forests of Germany may be adversely affected 
by taxes which correspond with the American property tax in the 
same manner, though to a less degree, than American forests. If per- 
sonal income and turnover taxes are considered, the absolute burden 
of taxation on forest enterprises has undoubtedly been much greater in 
recent years in Germany than in the United States. 
SWITZERLAND 
GOVERNMENTAL AND TAX STRUCTURE 
Switzerland in its political structure is more like the United States 
than the other countries which have been considered in this part since 
it is a federation (confederation or Bund) of 25 Cantons or States 
(including 6 demi-Cantons), each of which is to a large extent inde- 
pendent in matters of internal government, with its own tax system 
and methods of assessment. The Federal Government regulates 
