(3) Each of the six Australian colonies has an income •tax. That in New South Wales was introduced in 1895; Queens land in 1902; South Australia in 1884; Tasma nia in 1902; in 1895; Western Austra lia in 19Q7.
The laws in the various colonies are gener ally similar. The chief difference is that some distinguish sharply between earned and un earned incomes, or as it is sometimes put, in come from property and income from personal exertion. In some of the colonies the income tax is • closely connected with and complicated by the land tax. The amount of exemption varies from i100 to £200. The rate of taxation varies from 1 to 5 per cent. The maximum is usually 5 per cent, which is levied only on the highest incomes. In each of the colonies the income tax is fiscally important and in South Australia brings in as much as 55 per cent of the total revenues. , (4) German Empire, as sada, does not levy' any income tax. Each of the 2t German states has a complete or partial come tax. The systems are extremely varied, but all partake to a considerable extent of the prevailing militaristic organization.
Prussia is not only the most important, but in some respects most progressive, and needs special comment, because the income tax' there has many excellent features. The Prussian in come tax was first provided for in the law of 1891. Incomes of less than 900 marks are ex empt. Certain other exemptions are granted, such as military pay, sinking hinds and some other special forms of income.
The tax is very fowl,: graduated, beginning at the lowest class at only .57 per cent. From this rate it increases by very small increments to 3.15 per cent in the class 9,500-10,500 marks. For higher incomes the rate is ap proximately 4 per cent. For companies with limited liability the rate is very slightly higher. Persons having a taxable income of not more than 3,000 marks may deduct 50 marks for each dependent.
The method of administration is inquisito rial in the extreme and a variety of checks are provided. Each person is required to make .out a declaration, but the amount of income tax able is decided by one tribtinal for those having incomes of less than 3,000 marks and another for those of greater incomes.
In some municipalities local taxes are as sessed on the basis of the royal tax returns, in some cases the taxes amount to 100 to 200 per cent of the government income tax. The gov, ernment, in order to meet certain deficiencies, has added a •supertax, varying from 5 to 50 per cent in various income clauses, and for per sons and corporations.
The average annual yield of the Prussian income tax during the . five years ending 31 Mardi 1912, was 298,120,000 marks or 70.8 per cent of the income of Prussia from taxation. Later figures, owing to the war, are not avail able.
(5) Other Practically every im portant industrial' and commercial country of the world has developed an income tax. If space permitted, it would be especially worth while to review the legislation of France, Italy and Switzerland. In practically every country where it has been tried the income tax has be come a permanent and important part of the fiscal system.
In South America, however, the principle of the income tax has not been popular 'and the only' country that has had an income tax for several years is Brazil. lit Bolivia, there is a tax on dividends of certain corporations, but nothing in the nature of a comprehensive in come tax law. In Uruguay there is a tax on revenue derived from certain rents. In one or two other countries the income tax has been proposed, but has not met with much favor. , The Income Tax in the United Staten- Some difference of opinion exists among au thorities on taxation as to whether certain early colonial taxes in this country were really income taxes in the modern sense of the term. In, the 17th century the system of taxation in Massachusetts ,celony contained certain de: Ments resembling an income tax. Certain of these principles have continued in operatioq there even down to thepresent.
Similarly in the colonies of Connecticut, Rhode Island, New flampshire, Vermont, Vir ginia and South Carolina, there are to be found many expressions in their tax laws indicating that "faculty" or in income, was to be chief measure in determining the amount of tax to be paid.