CANADIAN BUDGET

Evening Post, Volume CXXX, Issue 21, 24 July 1940, Page 10

CANADIAN BUDGET

SPIRIT OF VICTORY

EVERY CLASS AFFECTED

(Special to the "Evening Post.") (Per Clipper Mail.) VANCOUVER, July 12. On the principle of paying for the war from current s revenue, the Canadian Budget for its first year provides increased taxation to bring in more revenue than the total revenue of the Dominion for the year 1919. It touches every Canadian, rich and poor, oldj and young. The most striking increase | is in the income tax; exemptions have been reduced, rates have been raised, the grading has been made steeper. ■

In addition, a national income tax has been increased; it;will apply :to incomes of 600 dollars and over. The increased rates will touch the medium incomes severely, while large incomes will be especially drained. Excess profits are taxed up to 75 per cent. The luxury. tax takes" a new turn, especially in regard to motor-cars, to save the country the increasing burden of foreign exchange, which ranges from 11 per cent, upwards on the Canadian dollar, in relation to the American dollar. . ■

Thus, the special tax on motor-cars will be on a graduated scale, commencing at 10 per cent, on cars valued at 700 dollars, up to 80 per cent, on cars valued at 1200 dollars. It will have the effect of confining needs to the smaller-priced cars. Cigarettes and tobacco are to pay considerably more to the national revenue, as well as such luxuries as radios, phonographs, and cameras. The taxes on liquor and gasoline are undisturbed, as these are regarded as prime factors in furnishing revenue to the provinces, and liquor is, besides, one of Great Britain's most important export industries. The sales tax, at present at the peak rate of .8 per cent., is not affected. ACCEPTED BY THE PEOPLE. "We are now living from day to day .—indeed, from hour to hour," said the Minister of. Finance, Mr. Ralston, in his only Budget, introduced on the eve of taking up the portfolio of Minister! of Defence, in place of the Hon. Nor- j man Rogers, who recently met his death in the crash of a Royal Cana-j dian Air Force plane. "Our plans must be subject to change in the light of new circumstances. We consider that our, national income will be not less than 4,500,0'V000 dollars—an increase of 700,000,000 dollars over the estimate for 1939. We must see to it that by far the great part of that increase is used for war purposes."

The Budget, albeit the most rigorous Canada has known, has been accepted by the people wiVout a murmur. They feel that it is neither a rich man's nor a poor man's Budget, but one that gives all an opportunity to share in the national war effort. There have been indications that the country would have accepted even steeper imposts, were it given an assurance that the planes, tanks, guns, and men would be promptly forthcoming in the defence of the Empire. It is felt that, since the Dominion is assuming a large share of the national burden, in providing for soldiers, sailors, airmen, and skilled artisans in multiple war industries, the Provincial Governments can. do their bit by paring their expenditures for the i advancement of the common goaL