Progressive income tax, means that the upper class pays more tax from their higher wage, and the working class would pay a lower proportion. Caprivi was worried that high tariffs would damage German trade. Therefore he:
- SIGNED various TRADE TREATIES between 1890-1894:
- These offered German trading partners a REDUCTION in TARIFFS in return for an easier ACCESS to FOREIGN MARKETS.
- Consequently, tariffs were reduced, which gave the German ECONOMY a lift, introducing PROGRESSIVE INCOME TAX.
- However, this was hated by LANDOWNERS, who formed a PG called the FARMERS' LEAGUE against these treaties.
- This meant that Caprivi FAVOURED industrial over agrarian interests, by negotiating a series of reciprocal trade agreements to stimulate industrial exports.
- Therefore there was much AGRARIAN OPPOSITION towards CAPRIVI, which contributed to his dismissal.
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