ing was the prevailing principle of representation in the German parliaments, so now, by a direct or disguised property qualification, the amount of tax, and therefore, since this is determined by the capital of an individual, the holding of capital, is what, in the last instance, determines the right of election to legislative bodies and therefore of participation in the control of the State.
Just so in reference to all other institutions in which I have demonstrated to you that land ownership was the controlling principle in the Middle Ages. I called your attention then to the exemption from taxation of the noble landholders of the Middle Ages, and told you that every privileged ruling class tries to throw the burden for the maintenance of public welfare upon the oppressed propertyless class. Just so the capitalists. To be sure they cannot declare publicly that they wish to be exempt from taxation. Their expressed principle is rather the rule that everybody shall be taxed in proportion to income; but, on the other hand, they attain, at least fairly well, the same result in disguised form by the distinction between direct and indirect taxes.
Direct taxes are those which, like the classified income tax, are collected, and therefore are determined, according to the amount of income and capital. Indirect taxes, however, are those which are laid upon any necessity—for instance, salt, grain, beer, meat, fuel; or on the necessity for legal protection—law costs, stamp taxes, etc., and which the individual very frequently pays in the price of the commodity without knowing or perceiving that he is being taxed, that the tax increases the price.
Now no man, of course, who is twenty, fifty, or a hundred times as rich as another eats by any means twenty, fifty or a hundred times as much salt, or bread, or meat; or drinks fifty or a hundred times as much beer or wine; or has fifty or a hundred times as much need for heat, and therefore for fuel, as the workingman or the relatively poor man.
The result of this is that all indirect taxes, instead of
