Loading...
HomeMy WebLinkAboutThe Huron Expositor, 1944-02-18, Page 344 • 1. 3 ' 3 • It is, not kine, as Many people ira# agine,"-• that the income tax law of .Canada, "anat greweil."7'1i1ie Topay, without any haste plan or 0110000Y: It philosophy is clear and very sim- ple. It is designed to raise as much moneY 'as possible for war Purpopee. To this'. ever -riding necessity • otheil [principles have been sacrificed, 'witht serious injustices to some classes of taxpayers. During the war it has been considered impractical to reform the law, lest changes involve -a loss of war revenue; 'and the Cap.adiai taxpayer has made little complaint. But as •soon as the war Is. over, ,or perhaps as soon as it is seen to be near its end, Canada will have to re- consider its income tax system: iron}, top to bottom. Some of the main defects of the laiv have heed -noted i'thisseries of articles already—its disceuragement to enterprise; its extraordinary con- centration of power in officials;it Idek of any adequate opportunity of appeals for taxpayer against the de, eisiOns of official; • its system of charging penalties to the taxpayer if he underpays his taxes,' id its re- fusal to • allow the taxpayer interest if he overpays; it complication, which prevents many •taxpayers from knowing what they owe; and its long delay in colleetions. • These defects largely hit the busi- •ness firm and the indicidual with a substantial income. Another defeel, little appreciated in this country, hits the small -man and. hits him hard. This is Canada's °system of ,double taxation, which is far 'more drastic than the British system. A simple example will illustrate the 'Canadian and .Britialalaws covering tecoeie from 'investments. Assunie that a British citizen and' a Canadian citizen each receives $250 a year as on. an investment and has' • -3:1311M934XlitelliilOn in Winn/n40-- •• 3 Wee' Pre40) per cent Of his inCome, even thongi be is a very poor nian. n theory he Is not taxable, bectinine be jays 11.1g 7'911 an ilieomeiot $250 year. fl practice, he is taxed at .a higher rate then the man with. a $10,000 income from eti.JMY.'• This, of. course, is admittedly ridic- ulous. It results solely from the fact .that the income of corporations is 'taxed twice in Canada—once in the hands of the corporation earning the income, and again in •tate hands oe the recipient when that income Is dis-, tributed. . In the case mentioned a- bove, the little investor does not pay a second time, though he, has already lost half 'his dividend. , But if the total income of the in- vestor is large enough. to be taxable, then he not only losesthe amount al- ready paid in taxes by tie company, 'but must' ,pay another Mac on" his diminished dividend. Illiolisands of Canadians 'are „ paying these double imposts without realizing it, and moit of there imagine that the British investor is suffering more than they are. The position of,rthe Canadian pur- 'chaser of an annuity is also...remark- able. The payments received by a citizen in return for the purchase of an annuity .are largely a return of his ca-pitak---Yet .in' most classifications these payments are taxed as income, even though,the investor is doing M- lle more than withdraw hin.papitai from a bank. The -following hypothetical cas shows how the Canadian law affects a citizen With a modest estate. This citizen's income arises entirely from company dividends. He invests his. saving i3 in a life insurance policy with the provision that the • proceeds are to be used to purchase anannuity for his widow. Apart from some revenue earned •on the moneypaid into the insurariee--- company, . the citizen's. In Britain the 250 paid to the in- vestor representi a profit of $500 earned by the company Of which he is a shareholder. Of this $500 Profit, $250 is paid by the company to the government as taxes, leaving an •eq:' ual amount for the investor.,The gov- ernment ,does not tax the profits twice, first throtigh the company and then through the* ievestor, as we do In Canada. • • But the effect of the Canadian law it more onerous, in comparison with the British law, than appears on the surfaee. In Britain the. poor man, with an investment, income of only $250 a , year, is not, taxable at all. However, as he h,as already paid through the company, a tax.. of $250 on his dividend, he is entitled to re- claim it from the government.He re- eives a total. of $500 frond his in- vestment. But in Canada the inves- tor has n6' such claim. He has paid $250 tax on a $500 dividend, or 50 YOU'LL BE „itt AT THE SURPRISED , 1`, k QUICK SHINE! •S• , ,„. ‘Gig RQUiD V'4•Ii '#9 '4.4;1 PAST E Aar Agit 39 Magic's Rich Prune Biscuits. .1. e. sifted .fleer 4 tbspns,ohortening 4 Muss. Magsc Bak- 'q c. milkoPped ins ;Powder 6.0 12 ch tslm. salt t seemed p votes, as 1 c, whole 'wheaflour desired sugar Vstied rind 1. lemon g c. brown , .... . 'Sift together first three ingredients. Add whole wheat flour; lemon rind. Cut in shortening until asiscdti. Add milk to make soft dough. Roll out IA ppeinchithick, spread •with well-draindd chod prues; sprir ts. Ide with brown sugar. Roll asn for I eaMR Cetin eincb pieces: stand ori end in well - greased muffin pasts. Bake itt, moderate oven (3751.) about 30 hai0; Makes 15. . . Costs less than 1f"per average baking SYNTHETIC RUBBER PLANT NEAR SARNIA t 5.- Take specliferl cpTaTifittea 0_011, coal, saltwater and soap; -place-- horton Sphere with ,hydroearbons, polymerize into interlocking . 'Molecules antiwhat do ititii/---iiutreir1--That-dray-bet-clostett#tall to the average person, but at the government-owned Polymer Cor- Poration, near Sarnia, it't Ordinal* Conversation, From the Ware- ' tioned materials the Polymer workers actually prodliCe Canadian synthetic miller, 34,000 tOffia#Adiuti-S,and14,0030.tdfie Of. bytyl each year. The al *ire siarlid 'COOo tie 13 horton,sidor". atPelyrritk some of them"tiweiilitak rer, cont0104AbO carbons under 50t�treitepors3% ' part of the synthetleftrilin, her prediletiOti $o60141# • e44 oefr0P41e12,1'0 7 earned on 1j ,inlreastragntSu1 ii v1fc.; t4,:441.6, -44g9A,,:4130 404. attet lillnir3taanOL, , ,haYe paid Oil the 0/101801 *.tivAkIt3"- silent .threnigh. fenerPte„ chattnelo: Met, by the 'original' epn*anY. Wt*. ; e.itizen InVeefed, through taxes', an. its profitin Si:Mond, by the citizen himself When he received ine.,nbare of the prelate as +dividends. Third, by thefOitisen's-estate in the ntouri.mty, of Mee:slot/. duties the We insurance poliCY• Fourth, by the widow, on the an Fantastic?. Not at all. It is the law of Canada. -•• ttawa „News Letter Ottawa.—By concluding.41M"-dehate on the Speech from the Throne in a little' over a week, Parliament has set a record for business -like -conduct of public affairs. Vitith-the exception of the special session of September 1939, when way was•deolared; not for many years has this' preliminary but import- ant matter been disposed of so Ofilek- ly. Fewer Members spoke Ind the ma- jority of 'them handled their subjects with a clarity that bespoke careful preparation and occupied less time. if this'advance ie efficient functioning cf the Mime of Commons is maintained it should reduce impatience "of the people with what has often been re- garded as a time -wasting feature of democracy. Thae-the' Government is ready to give the lead in, early tackling of Post-war problems was shown when Prime Minister King announced that important committee sueVas those on Reconstruction and Social Security will be established and start working early in the seesion. This should enL sure adoption of measures during the present ,session, which are calculated • to aVert. post-war depression. Post-war difficulties in this regard • will be more easily overcome because extreme inflation has been prevent- ed' during the war. In the last 'war only about 15 per-eent of the nation'T total productive effort'wae de's/toted to the iconflict. ..'In this struggle it has reached .60 per 'Pent. Had ination been, allowed to gain headway it would have far outdistanced the ex- perience of the First Great War. Praises Economic Controls It remained for a."3member of the armed forces, Flight -Lieut. Jas. Sia- ciair,' Liberal Member of Vancouver North, to give Parliament' the clear- est idea of' how economic controls. have benefitted the Dominion. After serving iv the United Kingdom,. the Middle East and the Far Eaat, he de- scribed' thet suffering from inflation in countries which have not adopted rig-. id defences egainst'it.. He appealed to Canadians everywhere not to chafe at the irrations •of economic controls, in the light of. the obvious' over-all advantage they have brought, compar-, ed with the .plight of countries with- out them. Canada is to spend $240,000,000 less on war this year than last, according ,to Pinenee-Minister Ilsley's first ap- propriation request. This contrasts with financing of the last war when Costs pyramided., each year and were at• their peek the year after hOstili- ties ceased. It indicates that a sound foundation is being laid: fpr .financing a broad reconstruction program, main- taining farm pries and employment, without straining the financial, re- source S of the nation. It also points the way to the time when, eventually, takes can be somewhat lowered, de- spite the cost of contemplated social measures. War costs. will still be heavy at M650,000,000. But Canada's post- war,relief outlay for stricken nations, though generous at something under $100,000,000, will be far below ,the billion dollars mutual -aid which 'his been granted, for each of the' past two years. This saving of $9030,00,000 alone will far, exceed any additional Costs of comprehensive social services and, economic reconstruction meas- ures so far envisioned. The financial picture, .therefore, while till showing tremendons expenditures for war, is already beginning to brighten. , --Members Regaining Importance , As the stern drive of war legisla- tion nearscompletion, there is a distinct revival of the importance of private members of Parliament. Lead- ers of all parties are showing more disposition to consult the rank and and throughout the country. This ap- plies -.especially to the Government which has had to take full responsi- bility for war prosecution, much of its action having to be secret unt'l actually accomplished. Once again - private members are, assuming.a larg- er -place in the counsels of the ad- ministration. This trend is, expected.: to' accelerate as peace nears. In the international field, Mr. King has indicated that Canada does not intend to exchange ministers of am- bassadors with the individual 16 Sov- iet Republics recently granted a mea- sure of autonomy by Moscow. Dip10- matte relations between Russia and Canada larli-0-10MC:13053=01,91MIT 1 agilt1110.heila 031f. SAOTr -reelleetiTe. eapT tale *Ili' in all probability remain "alidffelitiged, the Prime Minister inti - Witted. ,s4 ADD A PINCH PIoor brushes nuty be cleaned by tinting id tt3tepg&soaDY lather. Add la good Pinel) ONialtiii-the suds, and men , rhail#100bra in warm water and tit tigiiiiiWiiiicita . to dry, \ • .(e1414040$1,,,, on Page gocifttigAt; Too W443 ILtr. Wsum 110iWieh, neeretarY Of ,the aetandatien, as the Chief OpplleripXian The +Mie- n1%40A jet aly .4ipeussed this titer - wily with the dergatation, but also held several sePoiene to give it cont, Plete study, Whilethe scheme its presented' was not endorsed, it was found to have faffipient merit to warrant further 000 and the follow- ing recommendatioan, was adopted to be forwarded to the Minister of Agri- cultere for Ontario and the Ontario Hog -Producerig.,.,,Aesoeiation: The Commission ,has thad placed before it for consideration a hog mar- keting scheme wide)? the Farm Pro- ducts' Control Act and has reached the following cenclusions: (1) That the officers of the Ontario., Hog Producers' ASPO011ation are to be congratulated upozi • the energy and enthusiasm with which they have worked for their -fellOw-producers and the results attained to date. , (2) While it hi recognized, that k a considerable amOinitof useful work had been done by the officers of the association, it west also be• recogniz- ed that the developMent of a satis- factory ,marketing scheme to cover a project so vast as the marketing of hogs .is a veil complex problem, which can only be evolved after a great deal of careful tbought and pre- paration. • (3) That the launching of such a scheme without adequate, thought and preparation might have serious. ef- fects upon the future development of marketing schemes' in general and the development of a hog scheme in par- ticular. Therefore, the Commission is of the opinion that the scheme as nor presented cannot be endorsed, for the following reasons: (1) It proposes to regulate the mar- keting of hogs but does not set forth any specific regulations for that pur- pose. (2) It proposes to establish price for live hogs and hog carcasses by negotiation, even though the effective control of prices for bogs is largely beyond the powers .of action of a provincial body. ' - (3) The proposal fails:to effect such control of prices as does rest within the powers pf a provincial body by failure to provide specific regulations for directing the movement of hogs to, market. Further, the Commission recom- mends that .the Hog Producers', As- sociation reconsider the scheme in the light of the aboVe objections and requests that the association endeav- our to redraft the scheme to meet these objections and that as soon as this hag . been done it submit its amended scheme forrturther consid- eration by the Commission; And that the Commission in the meantime •from its general study of livestock marketing problems will make an effort to develop effective principles which could be incorporat- ed in any livestock marketing scheme. Because of the necessary size of an overall hog marketing scheme for Ontario and the peculiarity of "the problems of hog marketing, the Com- mission is of the- opinion that a.iiy application of the hog marketing Scheme. Should be proceeded with in the initial stages on adocal 'area bas- ig rather than an overall provincial basis and that from the experience thiis gained the . larger. operations would have more hope of success." Following on this recommendation, the Marketing Committee of the Com, mission entered upon a. study of the problems of hog marketing and spent a, whole, day in 'consideration of the problems of loading, transportation and shinning, matters which might properly be brought under regulation in a scheme: The Commission also spent consid- rable time, dealing with an applica- tion. of the Ontario While Milk League and other milk producers or- ganizations for a plan whereby the Control i3J40t- Might fr)fs, 'aitte4 to Peat 4 C.P11003104 140.0.Sr?In.3`ta 141W::,;,P0#4-CeOt ,be ilee,t1 for :0433; Inrtianra,nee ef the -tliellistritr 04416' 1J azl PiliVjneiart`34Peeeiations3 After iength7 (UMW/lent ;the Pew' rahiaie/a adopted; tne recoreinendatiOn-C ,. 333 Whereas it is liblearatile.34Mi S peg/lest that pray104 be .Inade ter the licensing of prodateere Of raillftt • °uteri? now OPeragng Under the Pro"' visions of the Milk Control Act end the regulatiens thereunder, so that the elleitoniney ,assessments and• col- lections for the purpose of Meeting the legitimate expenses of the local and provincial associations assoiation o.fauch producers shall be made in the meet equitable and complete manner; "And whereas the Milk Control Board has already the power to make regulations for the licensing of per- sons engaged in the milk trade, the Caramisetion therefore recommends: (1) patethe Milk Control Act be amended so ao-tct proifde for the lic- ensing of producers of milk and the collection from them of license fees; (2) That provision be made for the collection of the license fee by deduc.“ tions made by the distributor or pro- cesstot to whom the original sale of mink is made, -such' deduction to be 'Made ,from the monthly cheque pay- able to the producers by the said dis- tributor or processor. (3) That the amount of such lic- ense fee Plait be determined fie= time to time by the lace' producers' associations for their respective mar- ket areas; .„ • (4) That tbefore any collection from any market area is authorized, the Milk Control Board must be satisfied that such collection is approved l3y a reasirnalleinajOritY -of themilk pro- ducers in such market area; (5) That the license fees so col- lected shall be paid' over by the dis- tributors and processors to the pro- vincial,body representative of the Milk Producers.,, which shall be re- sponsible for remitting the proper share t� the local associations of. producers: • (6) That the monies derived from thetlicenee fas' shall be used b' the said associations for their ligitimate expenses and for the maintenaace Pf services of benefit to the 'producers,I but -such services shall. not :include the creation- cif any capital, funds to be used for business enterprises." its discussion of county corariait- tees the Commission approved a re- commendation that the members of these committees who -are the ap- pointees of farm organizations shall he elected annually and that this el- ection shall take place at an annual meeting of these organizations, meet- oing jointly, and called to receive the annual reports of the county -commit- tees. fro* -1,401001.611;4iii applied; '11)*3011s bsndfoz' quick: *0:tholc, 3gcen t., 10- referenees to the use•Iif grain policy -as a building for the live. stock industry of 'Ontario. The •Commtssion is meeting again for another' week's session on Febru- ary 14th, while the Livestock Com- mittee is holding heatittgs at Clinton, Chatham' and London in order to se- cure the views of livestock producers in these areas,.. • . • * * Spring .0ffensivp On the Farm Front Food. is the, most important anl •all- pervaAing munition' af war. Without food, war would be no more, and hu- man 'life itself 'Would „become extinct. The accumulation "Of food stores.4be- fere aey offensive or other operation. of war 1,13 the first impOratiVe obliga- tion of.the successful military com- mander. He knows that, howeveit brilliant Ms strategy may bb, it is bound to .fail without the bodily sUs- tenance of his men through" the or- derly delivery of Food at the right place and at the right time. Every, 'detail of supply and transportation must be .thought out in advance and co-ordinated. 'If the' assembling of food entails such a :responsibility on the military commander, what about the heavy load. on, the.shoubders of the 'coriintry's 'first great munitioner—the fanner who makes the assembly of food pos- sible? In peace or war, year. by year, 'the farmer undertakes -a-- great spring offensive. "Eisterything has to be plan- ned in detail. As in the armed forc- es, nothing in the .preparatiOn for success on the farm may be Ieft to chance:. A year before each spring offensive some seed has to be sown. The grow- ing of good seed is, an art in itself and. 'hefore the best seed has been selected, it has been checked 'and re - 'checked. When at last, the seed has been chosen, it has to be cleaned to clear it ot 'weed seeds and reject in- ferior kernels. It has then to be test: ed tor germination and purity. The seed is 'the ammunition; the farpa machinery the field guns and heavy ordnance. The preparation of bhe soil parallels the, choosing of the battle- ground on which victory may be best assued, but before the ammunition is ided, it bas been made certain that the "field guns". which sow seeds instead Of shrapnel are in the highest working order. After .the first wave of the offensive has passed, the heavy ordnance, in the shape of harvesters :and threshers, all in first class order, 'have been readied for the •final, push an the harvest. AU is not plain sail- ing. There is fair weather and foul. There are hazards and heartbreaks, but the farmer carries on. Food just does hot happen. Its successful growing is th'e triumph of the farmer. * * Seed Program 1944-45 , Authority has now been given by iJw Dominion Government to the seed program "of the AgricultUral Supplies Board covering annuals of 1944 am! biennials 'of 1946. program will be similar to that of 1943 whereby farmers will grow seed under con- tract, and the Government will under- take to purchase any seed which may not 'be disposed of by the growers through the Canadian seed trade. The object of the program is to ensure A suggestion was also approved that, , the county .; committees should lave the power to require the.regis- tration of acreage and production within the county, in order to make available adequate information on which to base orderly marketing prac- tices. The Farm Credit Committee made a study :of the development and op- erations of bhe Ontario Agricultural Development Board from 1922 to 1935: The Soil Conservation Committee made further progress in its examina- tion of possible remedies for the de- cjine of water tables and for soil erosion"and depletion. The Grain and Field Crop Committee begdn a study of' a grain policy for Ontario with T HE PICK OF TOBACCO ft DOES taste good in a pipe • • • ' rp,•1?: that sufficient seed is grown ,/.143,, Ludo, . which, withea the. pi*;n Might not be *educed in, s ,cillantity to meet, Canadian ne14 annuals covered by the Urrnngeznn' inelnde: Beans, earn,: cucumber, .41ts time, radioli and spina& and the h.410.°3', nials include`' beets; carrots, 044040,, cauliflower, onions, paranips„ fii3,00; and mange. The program will441014". under the direction Of the Seeds Ad- ministrator of tire -Board. • * * Fertilizers Freight Costs Deets 4.913 subventions Were Pahl on fertilizer 'used on crops considered essential in ..feeding live stoOk—pas- tures, field corn and ensilage crone, ' feed grains and mange's and turnipe..., This program lapsed at the end,. of 1943. The'newplan whieh will apply to fertilizers used in crop production in 1944 instead Of paying subvention -4 on fertilizers used on specified' crane, equalizes `the freight cost of all ter- tatters shipped to local distribution points where farmers take - deliVery, and Will enable farmers in -afferent localities to buy fertilizer at Prectie- ally the same cost. The plan anneal to the T Martime Provinces, Quebec. Ontario and BritiSh eolumida, and will be administered by the Fertilizer and Pesticides' Adrdinistrator3- . • BREAD sgipdl • WRAPPED AIRTIGHT ., TO PROTEeT,POTENCY— , ALWAYS DEPENDABLEI ASAff7 17 rim FRWWp bje JOS' No. 32 AND /yegy, Yea e4R7-OTfl72 ch1.44/44- h f SAM/6r -MOW, ef..PA0000.0•.>:.Ma •F" ida X44 /144044 77i, POP /4/0074/ ZS" ilflarter1) R -4147'W.46,4 ODD me Nam Avo .(7S- „cow, 6,4e444v Aae You,7-ao ,trieirre--,-re.,toreass • reit,' THEM VICTOMOOk 24MECOMItik3 ,„.1°, :4‘g SA 3n3-:3-,, • 4.5409.49S4Y2Z 1 6,s-z14os BIX5 d ?.'S efterille.fa: 7-1617t _elervv,p 41-74R 77i iyAR ppy/E? 6a,071 --e 0:WE — P1,87Irrrige/4 jy 4 • . • • ".•" • THESE AREN'T RATIONED - We all get a little tired of finding we can't buy this add . can't buy that. Butwe all know that theonbt-Way_ta,ratrect_ this.situation is to win the • war. Aud...the best way w carThelti iS1-6.bay War • ay.3. lags regularly. 'That fa why • ,weshould all ba•gladto oft ttre'VO034,X44it*tke: rhre ttail-accelit otr.OhitNge.,I Wit$104..$ • ri A • • 3 •