/biz/ - Business & Finance

>>29422919
Similar things happened after WW2:
The Load Equalization Act (LAG) of 1952
Initial situation:
• Germany was in ruins after World War II.
• The state wants to make compensation payments to those who had suffered losses

The burden sharing comprised three levies (taxes):

1. The property tax
2. The mortgage profit tax
3. The credit gain tax

Property tax:
• A tax of 50 percent (!) Of the market value was levied on debt-free properties.
• The LAG required the non-displaced persons to pay fifty percent of their property on the day of the currency reform, measured against the outdated standard values of the pre-war period.
• The taxes were collected in a compensation fund.
• Lobbyists had enforced allowances and certain exceptions, eg for church (!) Assets.

Mortgage Gain Tax
• This deprived property owners of the advantage that they had gained from the devaluation of their mortgage loans due to the currency reform that cut debts to 1/10 and monetary assets to 1/15.
• Practice: After the currency reform, the debtors had to continue to pay the amount originally set in Reichsmarks for interest and repayments for his mortgage loan in the same amount in D-Mark.
• So that the levying of the mortgage equalization tax could be ended in 1979, surcharges were levied from 1972 to 1979 on the liabilities that would not have become due until after 1979.

Credit profit levy
• The loan profit tax was constructed in a similar way to the mortgage profit tax.
• This siphoned off the profits from companies that arose from the devaluation of their credit debts.