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PG. 2 THE RURAL VOICE, AUGUST 1983
FEEDBACK
Arithmetic inaccuracies
Allow me to correct some technical and
arithmetic inaccuracies in the letter (July
'83) of Armstrong and Underwood on the
property tax rebate question.
1) Government sources estimate that ap-
proximately 117,000 properties represen-
ting 60,000 farms will qualify for the
rebate. Thus, the additional $20 million
that the government will pay under the
revised program works out to $171 per pro-
perty or $333 per farm. If the government
would lower the qualifying threshold to
$5,000 as proposed by the OFA, then ap-
proximately 146,000 properties will share
an additional $29 million, for an average
increase of $199. These figures are
substantially greater than the $6 per farm
claimed by Underwood and Armstrong.
2) Property taxes are and will remain an
allowable expense under the income tax
rules. Rebates must, however, be Included
as an income item. The rules have not
changed. Only an old loop -hole has been
plugged. This is a federal matter. The
same holds for provincial property tax
credits and pensioner tax credits. To
receive tax credits for monies already
received as rebate amounts to making a
double claim.
3) It is true that farmers operating under a
cost of production formula can include
their property taxes in the C.O.P. formula
and thus price their products accordingly.
But they must nonetheless sell their pro-
ducts in competition with other foods. For
instance, poultry products must compete
with red meats. If the market does not
clear, then either the price must come
down or production must be cut. To deny
the tax rebate to some commodities
would be discriminatory.
S. Veeraraghavan
Research Department
OFA
Just wanted to tell you
On Canada Day, I decided to take a few
hours off from being a farmer or a
publisher -editor.
While relaxing on our patio watching
our fields of corn and potatoes grow, The
Rural Voice happened to be at the top of
my reading pile.
No doubt the pleasant circumstances
helped, but I really enjoyed reading your
magazine and felt I should tell you. As a
friendly competitor in the farm publication
business, I appreciate the effort that goes
into your monthly issues.
Bob Verdun
publisher -editor
the Farm Gate
Elmira, Ont.
Something to say' Send your letter to
The Rural Voice, R.R.1, Dungannon
Ontario. NOM 1R0