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To: smolejv@gmx.net who wrote (25480)	11/17/2002 9:00:22 PM
From: elmatador	Read Replies (2) \| Respond to of 74559

Germany set to impose 15% capital gains tax By Uta Harnischfeger in Frankfurt Published: November 17 2002 21:10 \| Last Updated: November 17 2002 21:10 news.ft.com <<It is everywhere the same story: Increase taxes to appease the electoral korral that are the public "servants". And then the country goes down the drain. What is the difference from Argentina?>> Hans Eichel (pictured), the German finance minister, appears likely to impose a 15 per cent capital gains tax on future domestic investments, marking the latest in a series of tax increases that have caused an outcry against Chancellor Gerhard Schröder's re-elected government. Ending weeks of speculation, Mr Eichel proposed the flat 15 per cent rate in coalition talks between the Social Democrats and their junior partners, the Greens. The news comes as the Social Democratic-led government is trying to come to terms with unexpectedly larger tax shortfalls, lower growth forecasts than expected for 2002 and 2003 and a scolding from the European Commission about its swelling budget deficit. Mr Eichel's office said he had received "positive noises" from Mr Schröder and the Greens when he floated his plan. The decision to tax both equity and real-estate investments at 15 per cent comes as a relief to many. There had been talk that such investments could be taxed at individual income tax rates, which tend to be relatively high in Germany. Nevertheless, banks and investors have repeatedly warned that any capital gains tax, regardless of the rate, would further damp Germans' inclination to invest. So far, equity investments are taxed only if sold within a year of their purchase. The sale of real estate not used by its owner was taxed only if the proprietor sold it within 10 years of the purchase. The capital gains tax is likely to become effective on February 21 when parliament takes a final vote on a larger tax package as part of next year's budget. The law's first reading will be on Wednesday. The tax is estimated to raise about €650m a year. Meanwhile, investments dating back before February 21 would be taxed at a flat 1.5 per cent rate. Losses can be booked against gains. Separately Mr Eichel must also amend the bank secrecy law since banks would be obliged to notify tax agencies of their clients' investment gains or losses. Last week the latest German tax projections confirmed that the government expected tax income to be €15bn lower than had been thought, raising new borrowing this year to about €35bn. In addition, the European Commission formally ordered Germany to bring its swelling budget deficit under control. Meanwhile the government's independent economic advisers published a damning forecast for Germany's economic growth, saying the economy would grow a mere 0.2 per cent this year and 1 per cent in 2003.

To: smolejv@gmx.net who wrote (25480)	11/17/2002 10:31:19 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 74559

"Great trust in government managing wealth" was even then On 23rd November 1938 the executives of Berlin's major banks - the Reichskredittgesellschaft and Berliner Handelsgesellschaft additional to the three banking houses, that are still active today,the Dresdner, Commerz and Deutsche, - met in the Ministry of Economic Affairs to discuss "the situation resulting from the Jew legislation" and to hear about of the decision onthe "complete transfer of real-estate properties and securities out of Jewish hands, first into state and possibly later into private hands". Additional six billion Reich marks were thus expected, a steady stream of additional income for years to come. German banks granted no more loans to Jews, because technically speaking they became a bad risk. Therefore, in order to come up with the obligatory dues, they had to sell securities, jewelry and real estate. That made the bankers nervous, since they feared an "uncontrolled and unprofessional run-up" in sales of equities and thus the danger of a "stock market dislocation". After all the subject was for those times a " gigantic block of securities" at the market value of 1.5 billion Reich marks. They wanted, that the goods were to be sold "slowly and under appropriate cultivation of the market", with the restriction however, that "the course risk of any kind is not to be shouldered by the banks". Regarding the technical execution they stated: "We suggest, that to avoid any unnecessary work in the public trust offices, where the stock certificates are deposited at the moment, they be put in trust for the Reich Treasury and be later sold in the name of the Reich financial administration in an orderly and professional manner, depending on the situation in the capital markets." But the Hitler state was broke. Reich bank board of directors has already been warning for a long time against "unlimited swelling of the public expenditures", which",in spite of tremendous squeeze of the tax screw,"... forced ..." the state finances to the edge of the collapse" . In this situation the banks offered " to grant the Reich finance administration the option of appropriate prepayment for (Jewish , author) securities, under conditions, which should not be that difficult to agree upon" . That's also what also happened.. The heads of major German banks in this case did not act as robbers,however very much as a the robber's sidekick, as the accommodating organizers, who made sure, that the process of expropriation unraveled in a most effective fashion. Furthermore they exposed their hypocritical side. They transformed the take of the robbery into cash. For this breach of trust and betrayal of their customers Deutsche bank for example deducted half a per cent of sales commission plus transfer expenses, payable by their Jewish customers. Also, the additional trade with securities, temporarily put under state control, animated the business and opened up the possibility of privileged trading for their own account. The main point however was, that the proceeds flowed into the German treasury and reduced the load for the public. The same applied naturally also to life insurances, whose contractually specified buy-back values were also transferred to the Reich treasury.