The Income Tax; a Study of the History, Theory, And Practice of Income Taxation At Home And Abroad

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In Germany, in France, and in many other countries, after the general property tax had been abandoned, and after it had been recognized that net product was in some respects a better index of taxable capacity than property, the whole tax system was changed into one on prod- uct : that is, first we had the land tax, which was levied on net produce ; then came the buildings tax, levied on the rental value of buildings ; then came the tax on capital, according to the yield of capital; then came th...e tax on business, in which the assumed profits were calculated according to the outward signs. All these were taxes on things — on the land, on the house, on the business, on the capital ; and finally, to round The Income Tax in the American Colonies 385 out the system, there was sometimes imposed a tax on the remaining source of profit, that is, the professions and em- ployments which yield a produce in the shape of a salary or compensation. These taxes are still to-day known as real taxes (impdts riels), or produce taxes {Ertragssteuern).

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