December, 1911.] 



549 



Miscellaneous. 



(3.) The inequality arising from the 

 fact that non-agricultural land and 

 buildings did not contribute towards the 

 local taxation. 



(4,) The prevailing dissatisfaction as 

 to the payment of tithes. 



Finally, Parliament determined to 

 create an entirely new system in lieu of 

 endeavouring to effect improvements in 

 the old. In place of the old land taxes 

 and the building tax, based on a per- 

 manent valuation, a real property tax, 

 based on periodically recurring valu- 

 ations, was established, with, at the 

 same time, an income and property 

 (capital) tax to the State. All the old 

 State taxes (except the title tax) were 

 abolished. 



The Taxes abolished in 1903- 





Value in 



Value in 





1,000,000 Kr. 



LOOM. 



Copenhagen ... 



2-1 



120 



Other towns... 



1-7 



90 



Rural districts 



7-2 



400 



Total ... 



11 



610 



The New Taxes after the 



Asses- 



ment, 1904. 







Value in 



Value in 





1,000,000 Kr. 



1,000/. 



Copenhagen ... 



4-9 



270 



Other towns... 



2-4 



130 



Rural districts 



6-6 



370 



Total ... 



13"9 



770 



Although the total returns from the 

 State taxes are increased by 26 per cent., 

 the burden of the rural districts is made 

 lighter by 8 per cent. It is evident from 

 these figures that the agricultural class 

 has been relieved considerably as com- 

 pared with the other classes of the 

 population. 



The 13,900,000 kr. (770,0002.) are raised 

 as follows : — 



Table showing Income Tax, 

 Property Tax and Real Property 

 Tax. 



Income Property Real 

 Tax. Tax. Property Tax. Total. 



aW c . a& c cM a . e&j e 



o)§ ®° ®^ a>c! a>§ a>°, <Do 



3 °. £6 »q 3g 3o_ 3g 3g Sg 



>o > > t-o > >o > 



Copenhagen.. 2'9 160 0-7 40 1'3 70 4'9 270 

 other towns 1-2 70 0*4 20 8 60 2'4 140 

 Rural districts 2'2 120 l'S 80 2 9 160 6'6 360 



Total.. 6-3 350 2-6 140 5' 280 13'9 770 



The new real property tax does not 

 amount to more than 5,000,000 kr. 

 (280,0002.), as compared with 10,800,000 kr. 



(600.000Z.), which was the yield of the 

 old real property taxes (land and build- 

 ing taxes). 



The real property owners in the cities 

 and towns have been relieved of taxes 

 to the amount of 900.000 kr. (50,0002.) 

 (from 3,000,000 to 2,100,000 kr.), equal to 

 a reduction of 30 per cent.: the burdens 

 of the owners in the country have been 

 lightened by 4,900,000 kr. (270,0002.) (from 

 7,800,000 to 2,900,000 kr.), or by 63 per 

 cent. The owners of large properties 

 with high mortgages on them have 

 gained very much, as they will have to 

 pay but a small income and property 

 tax. 



The income tax should be the same 

 for all people of the same financial stand- 

 ing ; but this equality, as yet, does not 

 exist, as many of the smaller farmers do 

 not appear to understand that the pro- 

 duce of their property used for personal 

 consumption should be reckoned as 

 income, so that practically they are 

 paying a less tax than townspeople of 

 the same financial standing. 



The present Taxation for State pur- 

 poses. — With reference to the income 

 tax, it will be sufficient to point out that 

 the tax is progressive (up to 2\ per 

 cent.), with a tax-free income of 800, 700 

 and 600 kr. (442., 392. and 332.) respective- 

 ly in Copenhagen, the market towns 

 and the rural districts, and that the 

 taxable income comprises the total 

 yearly income from every source in 

 cash or goods of money value. Increase 

 of fortune, occurring through rise in 

 value of goods, or through inheritance, 

 insurance money, &c, is not regarded 

 as income, neither is capital consumed, 

 no loans, nor daily payments, &c, receiv- 

 ed for the transaction of business on 

 public service. Prom the total income 

 are to be deducted working expenses 

 (used to procure the income) of all kinds, 

 the money paid in taxes, the money used 

 for interest on mortgages, and for the 

 repair of real properties. In the case 

 of limited companies (who pay 2 per 

 cent, income tax), 4 per cent, of the 

 paid-up share capital is deducted before 

 assessing their income. 



The property (capital) tax is 0*6 kr. 

 (8c£.) on each 1,000 kr. (551.) of property. 

 Properties of less value than 3.000 kr. 

 (1662.) are tax free when their owners do 

 not pay income tax. By "property" 

 is understood all sorts of real and mov- 

 able effects, money bonds, capital value 

 of rents, &c. Exceptions are made in 

 favour of : (1) Household furniture, 

 clothes, pictures, &c, in private use; 

 (2) prospective rights, such as the right 

 to an insurance sum not yet due ; (8) the 



