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The Goderich Signal-Star, 1981-10-14, Page 26- PAGE 6A -GODERICH SIGNA9 STAR, WEDNESDAY, OCTOBER 14,1981 W. reserve the right to limit wale to normal familyrequirements! "Built-in" gas tax imposed BY JACK RIDDELL, M.P.P. In its May 1981 budget, the "Government of Ontario introduced a new method` of gasoline taxation. Instead of tax being levied on the basis of volume - so much per litre, it will in future be based on a percentage of the price paid, in effect 20 percent of the retail price, adjusted four times a year. This means, of course, that as the price of gasoline in- creases, so too does the amount taken 4v the Ontario Treasury. Never again will the government need to go to the people for an increase in the provincial take on a litre of gasoline. It has imposed "built in" increases which will take effect automatically with every rise in price. Let's not forget, either, that because the ad valorem tax is the last tax to be imposed,- it actually taxes . other taxes, including Federal excise and sales taxes. Every time the price of gasoline increases, the growth in the amount of revenue taken by the Ontario Government through its ad valorem taxis compounded. It is estimated, that , the province will be extracting, at the very least, over $7 billion in gasoline taxes over the next five years. As of June 1981, when the first ad valorem tax was applied, Alberta received 4.98 cents per litre of gasoline at the pump, while Ontario took 5.49 cents per litre. If Alberta's proportional royalty share per barrel -of oil remains the same as it, was in June - that is before the recent Ottawa -Alberta oil pricing agreement, Ontario will continue to have a " higher tax -take at the pump than Alberta. Recently, the Treasurer of Ontario stressed that Ontario's own energy- related expenditures will rise dramatically due to the pricing agreement between Alberta and the Federal Government. Just as the ordinary consumer will have to pay more to drive his car or heat his home, the Ontario Government will find it more costly to heat schools and hospitals, build roads, and so forth. The Treasurer estimates that the additional energy costs.to the Province will be. about $4.6 billion by 1986, while revenue gains from both the ad valorem gasoline tax and other provincial taxes will total at most only $1.8 billion. According to his Ministry's forecast, the Government Will face a cumulative shortfall of some $2.7 billion. The • obvious implication here is,that the inflationary impact of price hikes resulting from the oil pricing agreement, on the Ontario Government's own budget somehow justifies the im- position of a percentage rad valorem ) tax directly on consumers. In the Treasurer's own words, "This forecast of revenues and expenditures for Ontario (proves). that opposition . claims regarding ad valorem yields are highly unwarranted." The truth is that it proves nothing of the kind. Our analysis suggests that it is the 'Treasurer's forecast which is incorrect. Accor- ding to our calculations, he has underestimated the likely revenue gains from the ad valorem tax over the next five years by over $6 billion. We estimate, as I said earlier, that the ad valorem tax will net Ontario, not 'between $800 million and $1 billion, but a total of over $7 billion by 1986. Moreover, the Treasurer acknowledges that when the inflationary pressures resulting from the oil pricing agreerata-:...-ka •e--tutralveti- _._... their way through the tax Turn to page 7A • Prices effective thru Saturday, October 17th, 19810 You'll do better at ur great Fall... SAVE 1.90 Powdered TIDE DETERGENT 12 litre box (Our Regular Price 8.89) Fabric (Pkg of 20 1.79) BOUNCE pkg 9 SOFTENER of 60 �- SAVE 5051 Chunk Light STARKIST TUNA 6.5 -oz tin (Our Regular Price 1.49) Bolas SALAD 16 -f1 -oz 125 DRESSING jar COME VISIT 4%E FARiti 001111at A&PIM% for Freshness & Savings Product of Florida, White Seedless GRAPEFRUlt 10 FOR 199 CANADA FANCY, PROD. OF ONTARIO, CRISP, JUICY, THE PRIDE OF ONTARIO GROWERS McIntosh Apples cello 5 -Ib 9 19 bag PRODUCT OF CALIFORNIA OR ONTARIO, GREAT WITH CHEESE SAUCE Fresh Broccoli bunch PRODUCT OF CALIFORNIA, ' THE NATURAL SNACK JUICY, PLUMP, RED OR BLACK Swfet Grapes Ib PROD. OF CENTRAL AMERICA, LARGE SIZE, GOLDEN RIPE Dole Bananas 21bs88¢ CANADA NO. 1, PRODUCT OF ONTARIO, LARGE SIZE, FIRM, SOLID HEADS Cabbage Green 2for 99¢ CANADA EXTRA FANCY, PRODUCT Of WASHINGTON, THE PICK OF THE APPLE ORCHARD Ap pp Golden Delicious Ib 7811 CANADA NO. 1 SMALL, PROD. OF ONTARIO, YELLOW Onions Cooking 10 -Ib bag 1.49 PRODUCT OF U.S.A. OR B.C., SWEET, JUICY Bartlett Pears ib 59¢ 'CANADA NO. 1 GRADE, PROD. OF ONTARIO, ALL PURPOSS Potatoes 20-16 bag 2.99 PRODUCT OF CALIFORNIA, IDEAL IN CAESAR SALADS, FRESH, GREEN, CRISP Romaine Lettuce each69! CANADA NO. 1, PRODUCT OF U.S.A., FAMILY PACK, RED Tomatoes 1'/2 -Ib tray pack 1.6 CANADA NO. 1, PRODUCT OF ONTARIO j?arsnips 2 l bag 99,1 CANADA NO. 1, PRODUCT OF ONTARIO Celery Stalks each 79¢ CANADA NO. 1, PRODUCT OF ONTARIO Carrots 5 l bag 99¢ PRODUCT OF CALIFORNIA, GREAT FOR SNACKS, LUNCHES, HALLOWEEN SHELLOUTS bag of 14,'/i -oz pkgs Raisins 1.49 PRODUCT OF ONTARIO, EXCELLENT IN SALADS REALEMON 4.5 -OZ PLASTIC CTNR Spinach 10 -oz bag 79¢ Lemon Juice 361.00 PRODUCT OF SOUTH AFRICA, SWEET, JUICY ASSORTED 6 -INCH POT Oranges 12for2.69 Tropical Plants 4:99 Il You'll do better with HEALTH & BEAUTY AIDS and GENERAL MERCHANDISE from A&P Regular or Mint Flavours CREST 100.11039 TOOTHPASTE tube CALGON, BOUQUET Bath Beads 15-ozpkg 1.99 ASSORTED TYPES 200 ml AEROSOL TIN Vo -5 Hair Spray 1.99 paa OF 40 - Tampax Tampons 3.59 PINK, BLUE OR YELLOW J®Cloths pkg of101.39 WILKINSON "SUPER SWORD", STAINLESS SAVE 2.10 \\\\\1111111111y/ , Mountain Dew, Regular or Diet SIX PACK OF PEPSI -COLA 750 ml bottles 99 (Plus bottle deposit) (Our Regular Price 4.09) 71111 IIIU1\\\ (Our Regular Price 1.19) Multipack MARS BARS SAVE 30c 99%J SAVE 44? Country Recipe or Deluxe 11, Assorted Varieties DUNCAN HINES CAKE MIXES 520 g pkg (Our Regular Price 1.43) Choice Yellow Cling Peach Halves or Bartlett Pear Halves VP AYLMER 19 -fl -oz FRUIT tin Contains Rich Brazilian Coffees 8 O'CLOCK INSTANT COFFEE SAVE 1.00 (Our. Regular Price 4.99) 10 -oz jar CHAMPION, RIO OR PANDA Dare Biscuits CEREAL Weetabix QUAKER 400 SINGLE PROCESS CHEESE SLICES 9Pkg 1:39 Black Diamond BLACK DIAMOND, 'GRATED 400gpkg.1.29 Parmesan Cheese 500 g PKG 2.39 250 g SHAKER 2.59 IMPERIAL Life Cereal 55°g Pkg 1.59 Margarine 316 pkg 2.39 SAVE 20c Premium (Our Regular Price 99c) V-8 28 -fl -oz VEGETABLE JUICE r tin Assorted Colours KLEENEX TISSUE L box of 200 sheets PINK ¢ SALMON • \\,„„„„Ipl/I SAVE 28¢ (Our Regular Price 1.07) (Made with 100% Pure Vegetable Shortening) Jane Parker Sliced (Our Reg. Price 83c, SAVE 34c) 100% WHOLE WHEAT BREAD 24 -oz loaf r You'll do better with BAKED GOODS from A&P! JANE PARKER, PLAIN, SUGAR, CINNAMON Cake Donuts JANE PARKER Bran Muffins JANE PARKER Razor Blades pkgo599¢f Cherry Pie RUBBERMAID DIMPFLMEIER //NNM I I I t 11l\1\\ pkg of 8 99¢ pkg of 6 1.29 7.75 -oz 159 tin ..�. Bathroom Tissue, Assorted Colours DELSEY TISSUE pkg49 of 4 rolls SAVE 36? 111/41. (Our Regular Price 1.85) Liquid, Assorted Varieties A&P 475 ml bottle 29 SALAD DRESSINGS -- KAM 12-0Z TIN Luncheon Meat 1.49 Flakes of Corned Beef 6.5 -oz, 1.79 Flakes_of Ham 6 5 oz. Flakes of Chicken 6.5 oz. MAPLE LEAF, Flakes of Turkey 6.5-01 TIN 1.49 1.89 1.69 MAPLE LEAF 1-1.B PKG Tenderflake Lard 79 INGERSQQ)_, PROCESS, REGULAR OR SKIM 500 g JAR 624 g size 19g Cheese Spreads 2.29 CARNATION, INSTANT,RICH MARSHMALLOW OR MILK PKG OF 10-28 g ENVS Hot Chocolate 1.59 299 Apple Strudel 12°zpkg 1.19 Beath and Shower Caddy u� �tws 4 LITRE CONTAINER fFLEISCHMANN'S pkg�f2, 119 Kin tubs CHINOOK, WINDSHIELD Corn Oil Margarine Washer Antifreeze 1.49 10W30 1 LITRE TIN Shell Motor Oil 1.29 rriP, MiJLT1=PACK, REINFORCED - Pantyhose pkg or 3 pairs 2.99 (Our Regular Price 1.59) SAVE Raiff FIVE ROSES FLOUR 29 I SAVE I I 1.06 1 J 5 kg bag (Our Regular Price 3.25)