New-York tribune., 1919-06-07
High Income Taxes
Planned by Canada
TO Meet Big g Budget
Dominions Bill for Year Will
Be Nearly Two Billions: :
to Cut Rate of Necessities:
Parliament Gets Budeet

OTTAWA. June e.-Canada's debt
when expenditures authorized for the
current year are made, will aggregate
$3.50, 100000, or 1920 per canita, Sir
Thomas White, Minster of Finance.
announced in discussion Of the
Dominion budget in the House Of
Commons yesterday.
The interest burden would be sl15.-
100000 a year, he said. This eypen-
diture being exclusive of pensions
amounting from S350OO,O0 to s45,OOo.-
900 annually.
large increase in the income tax
will be authorized as one of the
measures to meet the Dominion's OBJ
legations, largely the result of war
expenditures.
Free Wheat Imports Planned
Features of the new tariff proposals
include free importations of wheat,
wheat -four and potatoes from coun
tries extending like courtesy to Can
ada, and a substantial reduction on the
While the tariff changes were not
particularly sweeping, they were much
more comprehensive than most
Canadians had expected.
Outstanding features of the budget
included: Reduction in duties on many
agricultural implements from q per
cent to Is per cent; reduction in
railway rates on agricultural imple-
ments; repeal of the British preferen-
tial rate OF per cent and partial re-
peal of the intermediate and general
tariff rate of ~ per cent imposed
as war measure in 1915; renewal
of the business profits war tax for
the current calendar year and prom
Use of general revision of the tariff
after stable conditions have been
restored.
Partial revision of the 712 per cent
intermediate and general tariff rate
makes it no longer applicable to food
stuffs, clothing, leather goods, agri-
cultural implements, petroleum oils,
bituminous coal, etc Reductions in or
dinary tariff include lowering of 5
cents a pound in the British prefer
entail intermediate and general tariff
rates on roasted or ground coffee and
3 cents pound under the preferential
on British grown tea.
The reduction on freight rates on
agricultural implements, Sir Thomas
explained, resulted from negotiations
with the railways which were asked
to reduce their rates from Eastern
manufacturing points to prairie points
to rates charged by the American lines
with shorter mileage from Chicago to
similar Western destinations. The rail
ways agreed to this reduction when the
government promised to abolish the
III per cent war duty on btuminous
coal.
To make up for an estimated loss
in revenue of S17,OOO,Oo0 from tariff
reductions, the finance minister pro-
posed the increased income taxes
The normal rate of per cent will
apply to all incomes of $1,000 to $4,000
in the case of unmarried persons, and
$4,000 to $4,000 in the case of married
persons.
There will be normal tax of PEI
cent upon incomes exceeding $4,000
The surtax will commence from $4,000
instead of $4,000 and will gradually
increase up to 65 per cent for income;
over S1,O00,0O0.
The business profits war tax pro
visions call for 20 per cent tax or
profits in excess Of 10 per cent made
by concerns having q capital of $25
600 to $4,000. The tax on businesse:
having a capital of $4,000 and ovel
is graduated up to a tax of rs pei
cent on profits in excess of 90 PEI
cent. Exemption is provided for in
corporated companies up to profits O
per cent and for other than incor
porated companies up to 10 per cent.
In connection with income and bus
mess profits taxation the Minister o
Finance issued the warning that thes,
forms of taxation might easily b.
carried to point where they woult
prove to be detrimental to the country
He pointed out that in some province
there are three sets of income taxes
municipal, provincial and federal
which constitute heavy taxation upo,
individuals and business enterprises.
Consideration of the budget will no
7 begin until Monday, when A. R Nc
Master, member for Bronze and chic
opposition financial critic, will opel
the debate