Of the larger German states, Saxony possesses the oldest and best statistics on the income tax. The present law is in force since 1879. But it is advisable to take a later year, because during the first years the assessments were, on an average, too low. The population of Saxony increased by 51 per cent. from 1880 to 1905. The number of persons assessed increased by 160 per cent. from 1882 to 1904; the assessed income by 23 per cent. Until the beginning of the nineties an income up to 300 marks per annum was exempt from taxation, after that up to 400 marks. In 1882 the number of persons exempt from taxes were 75,697 = 6.61 per cent.; in 1904, 205,667 = 11.03 per cent. It must be noted that, in Saxony, the incomes of wives and of members of the family under 16 are added to the income of the husband and father. The taxpayers having an income from 400 to 800 marks formed 48 per cent. of those assessed in 1882; in 1904 only 43.81 per cent. A part of them had advanced into a class with a higher income. The average income of the taxpayers of this class had increased by 37 per cent--from 421 to 582 marks--during this period, but still remained behind the average of 600 marks. The taxpayers having an income from 800 to 1250 marks formed 12 per cent. of those assessed in 1882, and 24.38 per cent. in 1904. But those with an income from 1250 to 3300 marks formed 20 per cent. in 1882 and only 16.74 per cent. in 1904. In 1863 Lassalle computed that only 4 per cent. of all incomes in Prussia were over 3000 marks annually. When we consider that, in the meantime, rents, taxes and the cost of living have increased, and that the demands in regard to the standard of living have grown, it becomes evident that the position of the masses has relatively scarcely improved. The medium incomes of from 3,400 to 10,000 marks in 1904 formed only 3.24 per cent. of those assessed, and the incomes of over 10,000 marks less than 1 per cent. The number of taxpayers with incomes from 12,000 to 20,000 marks, 0.80 per cent. The number of incomes of over 12,000 marks has increased from 4,124, in 1882, to 11,771, in 1904; that is, by 188 per cent. The highest income in 1882 was 2,570,000 marks; in 1906, 5,900,600 marks. These figures show the following facts: The lower incomes have increased somewhat, but in many cases this increase has been more than equalized by the increased cost of living. The middle classes experienced the least improvement; but the number and the income of the richest people show the greatest increase. Accordingly the class extremes became more marked.