perty
is most developed; thus for instance, in Duesseldorf twenty-six voters
of the third class have no more power than one rich man.

If we return from this discussion to our main thought, we have shown,
and shall continue to show, in what manner, since the time when, through
the French Revolution, the capitalist element obtained sovereignty, its
principle, the possession of capital, has now become the controlling
principle of all social institutions; how the capitalist class,
proceeding in just the same manner as the nobility in the Middle Ages
with land ownership, impresses now the controlling and exclusive stamp
of its particular principle, the possession of capital, upon all
institutions of society. The parallel between the nobility and the
capitalist class is, in this respect, complete. We have already seen
this with regard to the most important fundamental point, the
constitution of the Empire. As in the Middle Ages landholding 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