PAYING FOR WAR

Grey River Argus, 1 August 1940, Page 2

PAYING FOR WAR

CANADIAN BUDGET RIGOROUS TAXATION . VANCOUVER, July 12. On the principle of paying for the war from current 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, old and young. The national defence tax has been increased. It will apply to income 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, upward 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 wili have the effect of confining needs to the smaller-priced cars.

Cigarettes and tobacco are to pay considerably more to the nationai revenue, as well as such luxuries as radios, phonographs, and cameras. The taxes on liquor and gasoline are not disturbed, as these are regarded as prime factors in furnishing revenue to the Provinces, and liquor is one of Britain’s most important export industries. The jsales tax, at present at the peak rate of 8 per cent., is not affected.

“Wo are now living from day to day—indeed, from hour to hour,” saia the Minister of Finance, Mr Ralston “Our plans must he subject to change in the light of new circumstances. We consider that our national income will be not less than 4,500,000,000 dollars —an increase of 700,000,000' dollars over the estimate for 1939. We must see to it that by far the greater part of that increase is used for war purposes,”