The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1921-12-12
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NEWS GOSSIP

WASHINGTON, D. c.. Dec. H.
Congressman Stuart F. Reed was
one Of the AZ members of Congress
who made a trip to Canada to study
and Investigate the workings OF
that country's sale tai. When he
started on the trip he was opposed
10 that principle of taxation. He
returned, more f~avorably inclined
toward 1t. But no is. be 1t under
stood, not committed to IL
The congressional delegation Wis.
tied Ottawa, the Canadian capital,
and Montreal, the largest city.
Every facility and opportunity was
placed at the disposal of the visitors
10 sec for themselves how the
sales tax system worked. MI.
4Reed, as did many IN the party, per
sonauy interviewed manufacturers,
merchants, farmers and profession
al men about 1t. THE C%anadtans
certainly appeared to be unanimous
and enthusiastic ovor it" said the
West Virginia lawmaker today in
an interview accorded the represent
tatiye in Washington OF this news.
paper.
"Canada's present salcs tax law
has been In effect since last May.
but CANADA had the same system
in different form as to details and
administration, for several years be-
fore that. Tho present law IS i
more perfected law" Congressman
Reed continued.
The chief provisions Of the
2 present law arc 1 1-2 per cent. tax
on sales and deliveries by mauu
facturers and wholesalers or Job.
bers: 3 per cent tax on sales ami
deliveries by manufacturers to re-
taiIers or consumers; 2 - per cent.
tax on the duty paid value Of impor-
tations by manufacturers and
! wholesalers or iobbers; and 4 per
Gent. tax on the duty paid value OF
importations by retailers or con
anmers.
"In every case the purchaser
shall be furnished with a written
invoice OF all sales. which invoice
shall state separately the amount
ot the sales tax to at least tho ex-
tent of / 1-2 per cent. The sales
tax must not be included, however.
in the manufacturers, producers or
wholesalers' costs on which profit
ais calculated. The tax ts payable
by the purchaser to the wholesaler,
producer or manufacturer at the
time of the sale. and then by the
wholesaler, producer or manufac-
turer to the government. Sales are
made first, then the payment Of the
tax.
THE sales tax is applied to lunl-
her, one of Canada's main products,
In a different manner to other com
modities. A Tux OF 2 per cent. Is
Imposed on sales and deliveries bS
Canadian manufacturers and 8 per
cent. upon all importattons. but no
further tax is payable on resale. II
other words, the manufacturer
alone charges the sales tax to the
purchaser, the wholesaler or 1Obber
absorbing the tax. The penalty for
failure to comply with this provision
Isl fine OF $500.
"The exemptions, broadly speak
ing are, ~ FoodstuTs in their nat
ural state; (2l initial sales of farm
produce by the farmer of his own
production; (S) the first products
Of the fisheries, mines and forests.
IN brief, the necessities Of life arc
exempted"
At this point in the interview.
Congressman Reed pointed to n
lengthy section OF the Canadian law
which contained a list OF specified
exemptions, far too lengthy a list
Stosprint in the limited space OF this
article. When the correspondent
concluded reading 1t, Mr.. Reed con-
unted:
1.-THE strong points Of the Cana.
8dtanslaw is the tax is absorbed prin.
cipally by the man higher up
whom the law intends shall pay It.
andfthat what passes on TO tho ulti-
mate consumer Is so small as to be
fndnitesimal and almost imperceD-
table, Under such q law tho work
or farmer or professional man
Rtthsan annual income say of $4,000
would pay so little OF the tax as lot
tofeel Il at all.
Another important point Is
that the men who pay 1t, pay 1t
only when they make the sale and
have the money, The revenue from