HomeMy WebLinkAboutThe Huron Expositor, 1944-02-18, Page 344
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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!
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‘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
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ida X44 /144044 77i, POP /4/0074/
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me Nam Avo .(7S- „cow, 6,4e444v
Aae You,7-ao
,trieirre--,-re.,toreass •
reit,'
THEM VICTOMOOk
24MECOMItik3
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:4‘g SA 3n3-:3-,,
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4.5409.49S4Y2Z 1 6,s-z14os
BIX5 d ?.'S efterille.fa: 7-1617t
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iyAR ppy/E? 6a,071 --e 0:WE —
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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
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