Canada’s Huge War Bill

Manawatu Times, Volume 66, Issue 102, 1 May 1941, Page 7

Canada’s Huge War Bill

PEOPLE ASKED FOR FARTHER SACRIFICES Received Wednesday, 8.15 p.m. OTTAWA, April 29. Canadians this year will have to forego still further of the less essential civilian requirements in the interests of war production, said Mr. Ilsley (Finance Minister; in introducing the Budget. He said two billion dollars were needed for the current fiscal year. New taxation should produce 300,000,000 and loans required would amount to 1,000,000,000. The provincial Governments were asked to vacate the income and corporation tax field for ihe duration of the war. Corporation and income taxes Will be all sharply increased. The national defence tax will be increased four per cent. The national income tax this year is expected to increase by 950,000,000. Increased taxes are imposed on gifts, excess profits, automobiles, wines and other luxuries. A 20 per cent, tax is imposed on motion picture entertainment and five per cent on racetrack betting. Last year taxation returns yielded 778,000,000 dollars compared with 468,000,000 the previous year. The income tax increased 50 per cent. Expenditure in the war account was 810,000,000 aud ordinary expenditure 393,000,000, of which 70 per cent, was interest on the public deut. The revenue reached the unprecedented total ol 872,000,000. The overall deficit for the year was 395,000,000. Canada’s na tional debt on March 31 reached 3,666,000,000 do”ars.