New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-13
WAR FINANCE
In CANADA
Why 1t Was Decided to
Levy No Tax on Per
sOnal Income.
BY s. ROY WEAVER.
(sECoND ARTICLE

vided extra taxes intended to raise an
additional revenue of at least 10000
600. The War Revenue act which ne IN
PRODUCED and which came into effect soon
after imposed charges upon all classes
of Canadian residents. Banks Nere
taxed on their note circulation, trust
/ companies on their gross income de-
rived in Canada, insurance companies
on net premiums. Taxes were also
charged on all cable and telegraph
messages, on all transportation tickets,
on sleeping or parlor car tickets. To
these was added a series of stamp taxes
which have proved largely productive.
They included a two-cent tax on all
cheques, bills of exchange, express and
postoffice money orders, bills OF lading,
a war stamp tax Of one cent upon every
Postal note, one cent on every
letter and postcard posted in Canada.
Stamp taxes were also charged on all
proprietary medicines, perfumery and
wines. Mr. White estimated that these
special charges would yield between
So 900, 900 and 100000
Why No Income Tax.
The minister made the following pro-
nouncement against a Federal income
tax upon individuals: "The matter has
had the consideration of the govern
ment and it appears clear to US that
such tax is not expedient, at all
events for the present. Under the
British North America act, while the
Dominion may. impose direct or indi-
rect taxation, the provinces are re-
stricted to the former. AZ present I'M
der legislation existing in certain Of
the provinces, income is subject to tax
alton by municipalities and in two
instances by the provinces themselves.
In other provinces no income tax ex-
lists, although in some of these bust
ness tax in lieu thereof is levied upon
"orporated companies. In order 70
ming into force an income tax, the
government would be obliged to create
rachinery for assessment, revision an
objection. This would involve heav'
xpcnse, as compared with the amour
rhich would be realized. Taking tn
ncome tex of the United States as
basis, it would appear that Canada
could hardly expect to derive from a
similar tax a sum in excess of $1,000
coo, from which would have TO be de-
Quoted the heavy expense connected
with it's administration Ny chief OBJ
jec ion, however, to an income tax IS
the fact that the several provinces are
also likely to resort to measures for
raising additional revenue, and am OF
the view that the Dominion should not
enter upon the domain to which they
are confined 10 a greater degree than
is necessary in the national interest.
There is another feature of the income
tax which makes it unsatisfactory for
the purpose of Dominion finance. |
refer 10 the length Of period which
must elapse before it becomes produc-
tive. In Britain, where the tax is the
chief source OF revenue to the imperial
government there is no municipal tax
alton upon incomes. There is also the
important difference that in Britain
taxable incomes are derived largely
from investments. They have, there
fore, a settled and permanent charac-
ter, are ascertainable with fair accu-
racy and are capable OF being Nvied
upon at their source. With US this is
not the case"