The tax on mortgage profits, also known as the revaluation tax

Tax introduced in Germany after the 1923 inflation. The legal basis was the fiscal emergency decree of 1924 and the law on compensation for inflation that followed two years later. The levy was intended to absorb the profit between the good money that the creditor had spent and the bad money that the houseowner had used to repay the mortgage, which had become worthless due to inflation. – After the Second World War, in the course of the equalization of burdens, a mortgage profit levy was again introduced in 1948. – Each time, legislative bodies, authorities and courts of all instances were busy for decades just to regulate and arbitrate the damaging consequences of inflation on legal relations of mortgages. – See money, moral, money property law, money neutrality, long-term, money ethics, money neutrality, long-term, money value stability, inflation tax, market mechanism, menu costs, nominal value principle, commodity hoards.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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