New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
'Canada's New
Taxes to Yield
$lOO,OOO,O0O
Minister of Finance Tells
House He Expects In
creased Revenue to Meet
Increased Expenditures
Levy on Business Stays
Repeal Is Held Impossible
Because the Country Is
Not Yet Back to Normal

est business day of the year is Bud
get Day" in the House of Commons
at Ottawa. On that day in each year
the Minister of Finance rises in his
place in the House and reviews the
financial conditions of the last twelve
months and the prospective financial
conditions of the next twelve months.
He explains the government financing
during the year and gives a general in
dication of the intentions of the gov
eminent in this respect in the financial
year beginning.
In the Dominion of Canada the fiscal
year closes on March 81. The budget
speech is made as soon after March 81
rs all the returns are available. On
account of the absence of Sir Robert
Borden, the Prime Minister, the budget
speech was rather later than usual this
year. On Tuesday of this week Sir
Henry Drayton, who recently succeeded
Sir Thomas White as Finance Minister.
presented his first budget. He outlined
new direct taxes of various kinds, which
are calculated to yield from $4,000 900
to 100,000,000. At the same time he cut
of the customs war tax of tx per cent.
which has been lie led on importations
and which last year yielded $4,000, 900,
He explained that the net revenue for
last year was $685., 900 900 and that with
these new taxes he would expect an
increased revenue sufficient to meet the
increased expenditures.
Removal of Customs War DUTY
In speaking of the removal of the
customs war duty Sir Henry Drayton
said: The general war customs duty
OF I Z per cent was repealed last year,
in so far as articles of food, clothing,
agricultural implements and fertilizers,
as we'll as some other items, are con-
cerned. 1t, however, still obtains on
large part of our importations, approx
mately S30.000,000 of revenue accruiue
from this source last year. 1t is tax
which has been blamed, perhaps as
much as any tax, with the exception Of
the business profits war tax, as a reason
for the high cost of living Notwith-
standing the need for revenue in view
81 the fact that it is impossible at the
present time to intelligently revise the
tariff and the further fact that the Incl
NS'SN " iiiH eoNJ pidCcu us II Is III q
general blanket way, works and main
tains Inconsistencies. it is proposed to
abolish entirely this ~ per cent war
duty"
When he dealt with the income tax
the minister had to meet the possible
criticism that the new tax would be
higher than in the United States. He
said:
That our measures of taxation must,
IN view of our geographical situation
have regard tn United States legisla-
ton Is principle that. has found gen
erai acceptance. | doS not desire to
question 1t. But revenue is urgently
required, and difference of per cent
in these individual and CORPORATION
taxes will not deter immigration and
the investment of outside capital so es-
sential to our national development
and growth. 1t is therefore proposed
to increase these taxes on incomes of
$4,000 and upward by per cent The
increase will be made effective this
year. AS a result, this tax on q per-
sonal income of $4,000 will be S126, as
against levy Of $500 last year, and on
an income of $4,000 SO SAC so, as against
$5,782 last year In the case of a cor
poration with an income of 100000,
the rate this year will be S10,5OO, as
against $4,000 last year"
Business Profits Tax
The minister regretted that it was
impossible to repeal the business prof
its tax, because the country had not
yet returned to normal conditions.
While it was not possible to repeal this
measure, it was determ ined to reduce
it. Instead Of levying 25 per cent on
all profits over per cent, it was de-
cided to collect 20 per cent on all prof
It's over 10 per cert. On profits in ex-
cess of Is per cent, but not exceeding
20 per cent, the tax was increased to
30 per cent, with corresponding in
creases on higher profits.
In addition to these. certain changes
were made IN connection with domestic
and excise duties. A tax of 10 per
cent is imposed on boots and shoes
over SO per pair, mems clothing over
$45, women's dresses over S45 and suits
over $50; opera cloaks, sporting goods,
velvets, silk embroidcries, laces and
ribbons. There will be tax of 20 per
cent on certain gold and silver arti-
cles, ORIENTAL rugs, carpets, curtains
chandeliers and jewelry. A tax of so
per cent will be levied on articles of
gold for Office use The excise tax on
autom obiles will be increas ed from 10
per cent to Is per cent, while phono-
graphs and piano players will be taxed
~ per cent. Patent and proprietary
medicines will pay 80 per cent. Rum
and whisky wild pay SO gallon, as will
perfumes containing spirits of any
kind. Champagne will pay So gallon.
The werkingman's beer and wine will
pay only 80 cents per gallon.
A Tax on Sales
Perhaps the most important of the
changes introduced by this budget is
the introduction of tax of / per cent
on sales by manufacturers, wholesal-
ers or importers. This tax will be
paid by the purchaser to the wholesaler
or the manufacturer at the time of such
sale, Foodstuffs are exempt, including
meats, butter, eggs, vegetables, -four
coffee, ten. fish, sugar and molasses,
anthracite and bituminous coal are
also exempt.
All checks issued in Canada must
pear stamp tax of two cents. This has
not been changed, but promissory notes
and Dlls OF exchange are to be taxed
two cents for every $500. There is also
10 De a stamp tax of two cents on each
snare OF stock transferred
All these changes, as announced in
the House of Parliament on May 1S
came into force on the following dav
AS changes in excise and customs are
seldom or never made except through
"a budget speech, the merchants of
~~1anada, and those dealing with them
are now aware of the conditions under
which they will carry on business dur
ing the next twelve months. On the
whole. the chanCac will foyoc two l.,