Only the poorer grades of tobacco have been
taxed 100 per cent. ad valorem, while the higher grades have been taxed
at a lower rate.
Any increase of indirect taxation can be justified only by the present
emergency. We should bear in mind that already three-fourths of the
Russian revenue raised by taxation comes through indirect taxes. Further
increase of these taxes will inflict new heavy burdens upon the poorer
classes, who in any case will have to bear the heaviest burden of the
war.
The present historical moment is of such magnitude that it can be
compared only with the Napoleonic wars. But at that time also the higher
classes had to contribute to the war expenditures. In 1810 an income tax
was put upon the landed nobility. Wishing to make it appear that the war
tax is a voluntary contribution, the Government levied it according to
the declarations of the taxpayers and refused to listen to informers as
to tax-dodging. The tax rate was progressive, with a maximum of 10 per
cent. All incomes below 500 rubles ($250)[1] were exempt.
It is to be hoped that the great memory of the year 1812 will induce the
well-to-do classes to contribute their share to the expenditures
inflicted upon us by the war. An income tax and possibly a temporary
property tax should be accepted by them.
A. SOKOLOV.
[Footnote 1: It should be noted that the purchasing power of money was
then approximately four times higher than at present.
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