Einführung in die Finanzwissenschaft

[Title Page and Publication Information]: Title page and publication details for Richard Kerschagl's 'Einführung in die Finanzwissenschaft' (1963), including the author's academic credentials and the publishing house information. [Preface]: The author outlines the book's purpose as a textbook and reference work, explaining the structure which moves from general theory to comparative analysis of international tax systems as of 1963. [Table of Contents]: A detailed table of contents listing the chapters and sub-sections of the book, covering the history of taxes, state theory, specific types of taxation (income, property, consumption), and country-specific systems. [Introduction: The Evolution of the Tax State]: The introduction explains the necessity of this new edition due to the expansion of the welfare state and European economic integration. It distinguishes between pure financial science, applied financial policy, and pragmatic descriptions of current state systems. [Section 1: The History of Taxes]: A historical overview of taxation from the feudal era (tithes and nones) through the mercantilist state and the Enlightenment. It highlights the shift from tax farming to professional administration and the emergence of the principle of universal tax liability during the French Revolution. [The Development of Modern Taxation (19th and 20th Century)]: Traces the development of income tax in the 19th century (Peel's reforms) and the 20th-century transition to mass taxation, the introduction of sales taxes (Umsatzsteuer), and the rise of the welfare state's fiscal requirements, including non-tax compulsory contributions. [Section 2: State and Taxes - Sovereignty and Legal Principles]: Explores the relationship between state sovereignty and the power to tax. It discusses the territoriality principle, the legal requirement for tax laws (nulla taxatio sine lege), the role of the welfare state as a redistribution mechanism, and how different state theories (liberal vs. collectivist) shape fiscal policy. [Centralism and Federalism in Public Finance]: This section examines the tension between centralized and federal state structures in financial administration. It details various models of fiscal federalism, including complete separation of tax competencies, revenue sharing (Abgabenteilung), assignment systems (Zuweisungssystem), and tax surcharges (Zuschlagsbesteuerung). The author provides a comparative analysis of these systems across several countries, including the USA, Switzerland, the USSR, Italy, Germany, and Austria, while discussing the trade-offs between local autonomy and the economic unity of a currency area. [Fiscal and Socio-Political Purposes of Taxation]: The text distinguishes between the purely fiscal (revenue-generating) and socio-political (regulatory or redistributive) purposes of taxes. Examples include English inheritance taxes aimed at land reform, Italian bachelor taxes for population growth, and Soviet taxes used to force collectivization. The author argues that in the modern welfare state, the social purpose often conflicts with fiscal necessity, leading to a reliance on mass consumption taxes (VAT/sales tax) despite ideological objections, as high-income brackets alone cannot fund the state's vast social expenditures. [Taxation and the State Budget]: This section explores the relationship between taxation and the state budget, emphasizing the historical importance of the right to approve the budget as a democratic guarantee. It discusses the distinction between ordinary and extraordinary budgets, the technicalities of gross vs. net budgeting, and the challenges of budget forecasting. The author critiques 'deficit spending' theories, warning of inflation and debt, and advocates for a realistic, balanced budget approach based on the principle of moderation as suggested by Lorenz von Stein. [Adam Smith's Four Canons of Taxation and Tax Justice]: The author reviews Adam Smith's four principles of taxation: certainty, convenience, economy, and proportionality. The text traces the evolution of these concepts, such as the shift from fighting corrupt tax farming (publicani) to modern legal clarity. It also addresses the complex concept of 'tax justice,' breaking it down into moral/ethical dimensions, psychological acceptance by the population, and formal legality (nulla taxatio sine lege). The author concludes that beyond formal legal requirements, tax justice is often subjective and tied to meta-economic political programs. [The Principle of Tax Universality (Steuerallgemeinheit)]: This section explores the historical development and modern application of the principle of tax universality. It traces the shift from ancient and medieval systems—where taxes were often burdens for conquered peoples or non-privileged classes (excluding nobility and clergy)—to the modern democratic ideal of equal tax obligations for all citizens. The author discusses the economic failures of systems with narrow tax bases, the impact of the French Revolution, and modern exceptions such as diplomatic immunity, subsistence minimums (Existenzminimum), and the controversial tax exemptions for government officials and legislators. [Tax Economy (Steuerökonomie)]: Kerschagl analyzes tax economy from the perspectives of both the state (collection costs) and the taxpayer (compliance costs). He compares the efficiency of various tax types, noting that turnover taxes (Umsatzsteuer) are generally the cheapest to administer due to their automatic nature, while progressive income taxes are the most expensive and complex. The section also addresses how tax complexity leads to higher personal costs for taxpayers, the role of tax advisors, and the phenomenon of legal tax avoidance (Steuerausweichung) through territorial or structural shifts, particularly in federal systems like the USA and Switzerland. [Taxpayer Behavior and Tax Shifting (Steuerüberwälzung)]: This segment details five forms of taxpayer behavior: self-bearing, tax recovery through increased productivity (Steueraufholung), tax avoidance (substitution), forward shifting (to prices), and backward shifting (to wages or raw material costs). Kerschagl argues against the physiocratic notion of 'unshiftable' taxes, asserting that all taxes are theoretically shiftable depending on market conditions and power dynamics. He emphasizes that tax shifting is not a legal question but an economic one, influenced by price-wage interdependencies and psychological factors like the perceived fairness or purpose of the tax. [Problems of Modern Fiscal and Tax Policy]: The final section of this chunk critiques the modern 'tax state' within the context of the welfare state. Kerschagl observes that even socialized states (like the USSR) rely on taxes rather than enterprise profits to fund government. He discusses the global shift from direct to indirect taxation (turnover taxes) as a response to inflation and the exhaustion of progressive income tax limits. He argues that excessive progression (e.g., rates over 90%) paralyzes the will to perform and leads to 'degressive' returns. Finally, he warns that exempting the ruling class from the taxes they legislate undermines the democratic principle of equality and state legitimacy. [Classification of Tax Types: Fixed, Percentage, and Contingent Taxes]: This section categorizes taxes based on their technical structure, distinguishing between fixed taxes (like poll taxes), percentage taxes (proportional, progressive, regressive, and degressive), and contingent taxes (fixed total sums distributed by commissions). It explains the technical nuances of tax rates and the historical context of contingent taxes in estate-based and collective systems like the Russian Mir. [The Critique of Direct and Indirect Taxation]: Kerschagl critiques the traditional distinction between direct and indirect taxes, arguing it is theoretically imprecise and historically outdated. He traces the concept back to Physiocratic thought and demonstrates that modern economic dynamics, specifically tax shifting (Überwälzung), make it impossible to clearly distinguish between the two based on who ultimately bears the tax burden. [Personal vs. Real Taxes and the Nature of Fees]: The author discusses the overlapping definitions of personal and real taxes (Immobiliensteuern) and analyzes the blurred lines between taxes, fees (Gebühren), and contributions (Abgaben). He argues that the distinction is often arbitrary and historically contingent, noting that structural changes in modern economies make one-time payments increasingly difficult. [Income Taxation: Theory, Implementation, and Systems]: This comprehensive section explores income taxation as a modern fiscal tool requiring a developed monetary economy and administrative apparatus. It contrasts analytical (source-based) and synthetic (total income) systems, discusses the 'pay-as-you-earn' method for wages, and addresses the challenges of inflation and the distinction between gross and net taxation for businesses versus individuals. [Property and Wealth Taxation: Capital Substance and Value Increases]: Kerschagl examines the three types of wealth taxation: recurring property taxes, one-time capital levies (Vermögensabgaben), and taxes on value increases. He highlights the difficulties of valuation, the risk of capital consumption, and the problem of liquidity when taxing non-monetary assets. He references the Austrian 1948 wealth levy as a case study in converting a one-time levy into long-term installments. [Inheritance and Gift Taxation: International Comparisons]: This section analyzes the relationship between inheritance and gift taxes, noting that they must coexist to prevent tax avoidance. It provides a detailed international survey of systems in Austria, England (focusing on the 1894 reform and land policy), France, Italy, Germany, and the USA. It discusses the socio-political goals of these taxes, such as breaking up large estates or funding social housing, and the debate over their impact on capital destruction. [Taxation of Business and Professional Earnings (Erwerbsbesteuerung)]: This section explores the history and modern application of business taxation (Erwerbsbesteuerung). It traces the origins from medieval guild organizations and patents to modern systems that distinguish between physical and legal persons. The author discusses the shift from gross to net principles, the introduction of minimum taxes based on capital, and provides a comparative overview of business tax systems in Austria, Germany, England, France, Italy, Switzerland, the USA, and the USSR. [Taxation of Capital Income and Rents (Rentenbesteuerung)]: The author examines the taxation of capital income (Rentenbesteuerung), arguing that 'capital yields tax' is a more accurate term. The text details three types of rent taxation: securities yields, interest on deposits, and subjective rents like lease income. It addresses the economic challenges of these taxes, including their potential to discourage capital accumulation and trigger capital flight, while also critiquing the ideological motivations (e.g., Marxist surplus value theory) often behind their implementation. [Real Estate and Property Taxation (Realbesteuerung)]: This section covers 'Realbesteuerung' (taxes on immovable property), divided into land and building taxes. It discusses the historical transition from natural taxes (tithes) to monetary taxes and the role of the cadastre system. The author analyzes the decline of real estate tax yields in Europe due to the decreasing economic share of agriculture and the impact of rent control (Mieterschutz) on building tax revenues. Comparative perspectives on systems in Austria, Germany, Switzerland, England, France, Italy, and the USA are provided. [Consumption Taxes, Customs, and Expenditure Taxes]: A detailed analysis of consumption taxes (excises), customs duties, and expenditure taxes (Aufwandsteuern). The author explains the technical aspects of consumption taxes, such as denaturation of salt and alcohol to prevent tax evasion. It discusses the shifting role of customs in the era of international trade agreements like GATT and the European integration. Expenditure taxes are described as a flexible, modern category that targets specific lifestyle choices (e.g., luxury goods, dogs, entertainment) and can serve as a proxy for progressive taxation. [Turnover and Value Added Taxation (Umsatzbesteuerung)]: This section focuses on turnover tax (Umsatzsteuer), identifying it as one of the youngest but most significant revenue sources for modern states. It distinguishes between single-stage and multi-stage systems, and between cumulative and value-added (Mehrwertsteuer) models. The author defends the tax against social critiques by highlighting its simplicity, low collection costs, and neutrality toward inflation. The section concludes with a summary of turnover tax structures in major economies, including the French VAT model and the Soviet system. [State Monopolies and Public Enterprises]: The final section of this chunk discusses state monopolies and public enterprises. It differentiates between legal monopolies (Ausschließlichkeitsrecht) and state-owned enterprises operating in competitive markets. The author traces the history from medieval regalia and mercantilist initiatives to modern socialist nationalization efforts. It evaluates the financial performance of various sectors (forestry, railways, banking, industry), noting that while social or political goals might be met, these enterprises rarely replace the need for traditional taxation and often struggle with profitability. [State Loans: Theories and Economic Implications]: This section explores the controversial field of state loan policy, contrasting 19th-century theories—which treated state credit like private credit—with modern approaches. It discusses the theory of cumulative benefit, where loans are justified by indirect economic growth, and the view of loans as deferred taxes. A significant portion is dedicated to 'deficit spending' as a tool for maintaining full employment and economic intervention during crises, while noting the risks of inflation and the historical failure to repay such debts during periods of prosperity. [Legal Foundations and International Aspects of State Debt]: Kerschagl examines the legal fictions surrounding state debt, particularly the concept of the 'eternity of the state' which allows for multi-generational loans and perpetual rents. The text details the evolution of international law regarding debt collection, discussing the Drago, Calvo, and Monroe doctrines, and the Drago-Porter Convention's restrictions on armed intervention. It also highlights historical breaches of these principles, such as the Soviet Union's refusal to honor Tsarist debts and the Allied annulment of Austro-Hungarian war bonds, concluding with the current precarious legal situation under the UN Charter and the impact of Cold War geopolitics on creditor rights. [Types of Loans, Issuance Mechanisms, and Conversion]: This segment classifies state loans by duration (perpetual, long, medium, short-term) and security (consolidated vs. non-consolidated). It describes the role of banking syndicates in placing and maintaining the market price of bonds. The text explains the mechanics of loan conversion, repudiation, and unification, as well as the incentives for investors like interest, premiums, or tax payment utility. It concludes by discussing the competition between the state and private sector for capital and the necessity of coordinating with institutions like insurance companies and savings banks. [The Financial Constitution and Tax System of the USA]: An in-depth analysis of the US fiscal system, characterized by federalist principles and parallel taxation by federal, state, and local governments. Kerschagl traces the historical development through four periods, highlighting the 1913 introduction of the federal income tax alongside the Federal Reserve System. The section details specific federal taxes (personal income, corporate, estate, social security) and the diverse tax landscapes of individual states (sales tax, property tax) and municipalities (licenses, utility surpluses). [The Financial Constitution and Tax System of the Soviet Union]: This section describes the Soviet financial system as an integral part of total economic planning. It explains the three sectors of the economy (state, collective/cooperative, and private) and how the state uses the turnover tax (Umsatzsteuer) and profit skimming as primary revenue sources, accounting for two-thirds of the budget. It details the specific taxation of collective farms (Kolchoosen), the progressive income tax on workers designed to complement the Stachanow incentive system, and Khrushchev's failed 1960 plan to abolish income tax entirely. The segment concludes with a breakdown of Soviet tax categories and their relative importance to the state budget. [The Italian Financial Constitution and Tax System]: This section outlines the structure of the Italian financial system, distinguishing between state, provincial, municipal, and regional revenues. It details the specific taxes allocated to each level of government, including property taxes, income taxes, and consumption taxes, while noting that local entities lack independent legislative power over taxation, which remains centralized at the state level. [Italian Income Taxation: Analytical and Synthetic Taxes]: A detailed examination of the Italian income tax system, which consists of a proportional analytical tax (ricchezza mobile) and a progressive synthetic tax (imposta complementare). The text describes the different schedules (Categories A, B, and C) based on the source of income—whether from capital, labor, or a combination of both—and explains the specific tax rates and surcharges applied to each. [Synthetic Surtax, Corporate Tax, and Wealth Levies in Italy]: This segment covers the synthetic personal income tax (imposta complementare), including its mathematical calculation formula, and the corporate tax (imposta sulle società) introduced in 1954. It also discusses the history of wealth taxation in Italy, specifically the transition from a permanent wealth tax to various extraordinary wealth levies for individuals and legal entities. [Inheritance, Transfer, and Indirect Taxes in Italy]: An overview of Italian taxes on wealth transfers and legal transactions. It describes the two-part inheritance tax system (estate tax and succession tax), the taxation of gifts via the register tax, and the various forms of stamp duties (bollo) applied to documents and stock exchange transactions. [The Italian Turnover Tax (IGE) and Special Excise Duties]: This section analyzes the Italian general turnover tax (IGE), describing its complex structure as a mix of single-phase and multi-phase taxation. It details the tax rates, exemptions for social reasons (such as basic food items), and export rebates. Finally, it lists various specific indirect taxes, including stock exchange taxes, insurance taxes, and excise duties on alcohol, sugar, and electricity. [Finanzverfassung und Steuersystem Frankreichs]: A comprehensive overview of the French tax system, tracing its evolution from the pre-revolutionary 'four old taxes' to the modern reforms of 1948 and 1959. It details the transition from analytical schedule-based income taxes to a synthetic progressive system (surtaxe), the introduction of the 'quotient familiale' for family splitting, and the development of the value-added tax (TVA). The section also covers corporate taxation, registration fees, inheritance taxes, and the complex system of local municipal and departmental surcharges based on fictitious historical tax bases. [Finanzverfassung und Steuersystem der Bundesrepublik Deutschland]: An analysis of the West German tax system following the post-WWII divergence from Austria and East Germany. It explains the federalist structure of tax distribution between the Bund, Länder, and Gemeinden, highlighting shared taxes like income and corporate tax. Key features discussed include the 1958 income tax reform, the splitting system for families, the dual-rate corporate tax (for distributed vs. retained profits), and the integration of the 'Lastenausgleich' (equalization of burdens) into the wealth tax. It also notes the similarity between German and Austrian turnover taxes and the early discussions regarding a transition to a value-added tax aligned with EEC goals. [Finanzverfassung und Steuersystem der Sowjetischen Besatzungszone Deutschlands]: This section examines the tax system of the Soviet Occupation Zone (GDR), emphasizing its centralist and political nature. Taxation is used as a tool for social engineering and the liquidation of private enterprise, featuring extreme progressive rates (up to 90-95%) for private individuals and companies. It describes the shift from traditional taxes to 'production and service levies' (Produktions- und Dienstleistungsabgabe) within state-owned enterprises (VEB) and the specific tax categories for the 'intelligentsia', artisans, and collective vs. private farmers. [Finanzverfassung und Steuersysteme der Beneluxstaaten]: A comparative study of the tax systems in the Netherlands, Belgium, and Luxembourg. It highlights the lack of tax harmonization despite their customs union, noting that Luxembourg retained much of the German tax system from the occupation period. The section details the Dutch income and dividend taxes, the Belgian 'taxe professionnelle' and 'impôt complémentaire', and the unique tax status of Luxembourg holding companies. It also discusses the variations in turnover tax construction and the difficulties these differences pose for economic integration within the EEC and EFTA. [Finanzverfassung und Steuersystem Englands]: An analysis of the British tax system, characterized by strict centralism. It traces the history of the 'income tax' from Pitt and Addington to modern reforms, explaining the five schedules (A through E) and the progressive 'surtax'. Significant focus is placed on the 'purchase tax' (a wholesale-level turnover tax), the 'estate duty' (inheritance tax designed to break up large landholdings), and the 1963 reform of municipal 'rates'. The text also discusses the 'PAYE' (Pay As You Go) system and the 1962 introduction of a short-term capital gains tax. [Finanzverfassung und Steuersystem der Schweiz]: This section provides a comprehensive overview of the Swiss fiscal constitution and tax system, characterized by a historical tension between federalism and centralism. It details the evolution from the 1848 constitution to the provisional arrangements following the World Wars, explaining the distribution of tax authority between the Confederation, cantons, and municipalities. The text describes specific tax types including customs, military service exemption taxes, stamp duties, withholding taxes (Verrechnungssteuer), and the significant defense tax (Wehrsteuer). It also highlights the diversity of cantonal and municipal tax rates, which leads to tax competition and the relocation of businesses within Switzerland. [Financial Constitution and Tax System of Portugal]: A concise overview of the Portuguese tax system during its transition period in the early 1960s. It discusses the historical context of Salazar's reforms, the dominance of indirect taxation, the specific structure of industrial and capital income taxes, and the role of inheritance and turnover taxes. [Financial Constitution and Tax System of Austria: General Principles and Revenue Sharing]: Detailed analysis of the Austrian federal financial structure, emphasizing the balance between centralism and federalism through revenue sharing (Abgabenteilung). It explains the roles of the federal government, provinces (Länder), and municipalities, including the special status of Vienna and the legal framework for tax distribution. [Austrian Financial Equalization: Calculation Keys and Legal Procedures]: Explains the complex mathematical keys used to distribute tax revenues among Austrian administrative levels. It also details the administrative and legal procedures for tax disputes, including the roles of the Finance Offices, the Administrative Court, and the Constitutional Court. [Austrian Tax Tables: Own Revenues and Shared Taxes]: Tabular representation of the Austrian tax system, categorizing taxes into those belonging exclusively to the federal government, provinces, or municipalities, and those shared between them with specific percentage allocations. [Historical Evolution of the Austrian Financial Constitution (1938–1945)]: A historical comparison between the pre-1938 Austrian financial system, the centralized German system imposed during the occupation (1938–1945), and the post-war restoration. It highlights how certain German tax structures, like the municipal trade tax, were retained in the modern Austrian system. [Austrian Federal Taxes: Corporate, Wealth, and Specific Duties]: Detailed technical breakdown of exclusive federal taxes in Austria, including Corporate Tax (Körperschaftssteuer), Wealth Tax (Vermögensteuer), and various historical levies like the property increment tax. It defines tax liability, exemptions, and rate scales for legal and physical persons. [Shared Taxes in Austria: Income, Wage, and Turnover Taxes]: Analysis of the primary shared taxes in Austria: Income Tax (Einkommensteuer), Wage Tax (Lohnsteuer), and Turnover Tax (Umsatzsteuer). Discusses the technical differences in collection, the progressive rate structure, tax-free allowances, and the early 1960s debates regarding a shift toward a Value Added Tax (VAT) system. [Provincial and Municipal Taxes in Austria: Trade and Property Taxes]: Detailed examination of the taxes belonging to the Austrian provinces and municipalities. Focuses heavily on the Trade Tax (Gewerbesteuer), including its calculation based on yield and capital, and the Property Tax (Grundsteuer), outlining exemptions, assessment bases (Einheitswert), and local multipliers (Hebesätze). [Subject Index (A-Z)]: A comprehensive alphabetical subject index for the entire work, covering financial terminology, specific taxes, economic theories, and mentioned countries/thinkers. [Bibliography]: A selected bibliography of major works in financial science from the early 20th century up to 1963, including international authors and specific country studies.