WAR PRODUCTION

Waikato Times, Volume 128, Issue 21409, 1 May 1941, Page 8

WAR PRODUCTION

CANADA’S BIG OUTLET VERY HEAVY TAXATION SACRIFICES BY CIVILIANS United Press Assn.—Elec. Tel. Copyright) OTTAWA. April 29 Canadians this year have to forego still further less essential civilian ] requirements in the interests of war i production, said the Canadian Min- I ister of Finance. Mr J. L. Ilsley, in ; introducing the Budget. He said I 2.000.000.000 dollars would be needed in the current fiscal year. New taxation would produce i 300.000.000 dollars. Loans required I would amount to 1.000,000.000 dol- J lars. Provincial Governments were j asked to vacate the income and cor- > poration tax field for the duration of j' the war. Corporation and income taxes : would all be sharply increased, j National Defence Tax would be j increased by 4 per cent. Increased taxes would be imposed on gifts, ex- j cess profits, automobiles, wines and j other luxuries. There would be a ; 2 per cent tax on motion picture en- • tertainment and 5 per cent on race- ! track betting. Taxation returns last year yielded : 778.000,000 dollars. Income tax increased by 50 per cent. War Ac- j count expenditure amounted to 816,- j 000,000 dollars, and ordinary expen- i diture to 393.000.000 dollars, of which j 70 per cent was interest on the pub- j lie debt. Revenue reached the unpre- j cedented total of 872,000,000 dol- j lars. | The deficit for the year was 395,- | 000.000 dollars. Canada’s National | Debt at March 31 had reached 3,666,000,000 dollars. j Under the new 7 income tax scale, 1 a married man with no children with j an income equivalent to £6OO a year j will pay £BO in income tax, com- , pared with £37 previously.

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