Evening star., 1932-05-22

deal more of the small nuisance taxes
than they do of the sales taN We be-
lieve that your country would graciously
accept the sales tax after 1t was once
in operation.
l "one objection to the sales tax in
Canada, and possibly the greatest OBJ
lection. would be done away with If a
similar tax was enacted by your Gov
ernment at Washington. We would then
be on q par"
Causes Little Inconvenience.
J. d. McKenna, president, the Tele-
| graph Journal st. Johns, New Bruins
wick, said:
"Tfle sales tax has been enforced In
Canada for a number of years and Is
now a well recognized method Of rails
| ing money for federal purposes. At the
moment 1t Is per cent on all articles
manufactured In Canada, with a few
exceptions.
"The tax was brought in as war
measure and has been lowered and
raised from time to time. This year a
number of articles which were exempt
from the tax have been removed from
the expected list and are now taxable.
! 80 far as am aware, the tax causes
very little inconvenience. The ordinary
purchaser does not encounter the tax
personally because 1t Is paid by the
manufacturer and is either absorbed by
him or handed along to the business
house to which he sells. The man on
the street only becomes cognizant OF
the tax when he buys from a manufac-
turer or wholesaler.
"a proposal to establish turnover
tax in Canada met with strong opposi-
ton and was abandoned and the sales
tax continued"
What Tax Has Yielded.
A telegram from w. F. Herman, pub
Usher, Border Cities Star, Windsor,
Ontario, said:
"The sales tax, like all other taxes,
Is considered a necessary levy In order
to raise revenue. The sales tax appar-
entity Is preferred by the majority to
turnover tax. The revenue from the
sales tax In Canada has been:
Fiscal year 1927-1928-$72, 900, 600.
"le28-1929-s63,0 ,000,O 900.
"l929-1930-S44,0 ,000, 900.
l930-l931-S20,00 900, 900.
1881 1-1s32-$41, ,000, 900.
1.-THE sales tax was 6 per cent IN
1928. It was reduced progressively to 5
per cent in 1928. 1t was reduced to
per cent In 1880. In 1881 the sales
tax was increased from / per cent to 4
per cent. This year the tax has been
increased again and now stands at
per cent"
Tells Canada's Experiences.
i M. w. Rossie, editor. London Adver-
Itiser, London, Canada, says;
The sales tax was introduced into
Canada in the grise of luxury tax on
q limited number of commodities, but
as the amount of the tax was plainly
indicated to the consumer on every re-
tail purchase he made, 1t became 90
unpopular that 1t was abandoned, after
short trial, in favor OF the present
manufactures sales tax. Under the ex-
isting system, which has been IN opera
ton over 10 years, the amount OF tne
tax is absorbed IN the price to the uiti-
mate consumer, and is, therefore, nVlsl-
BILE so far as he is concerned.
THE business interests, until the
! present depression, caused such grave
| disturbance of the federal finances,
continually urged the abolition or re.
duction of the sales tax. The rate nao
risen in 1928 to per cent, but after
1924 1t was reduced year by year until
by 1880 It was only per cent. it was
generally hoped that the tax would DIS
appear in 1881, but revenues were fall
ing. and In the new governments nrst
budget Of that year the rate was raised
from TO per cent. This year II was
increased from 4 to per cent.
"The advances In the sales tax dur
ing the past two years have been ac-
cepted by the business interests as pref
erable to a turnover tax, which the
present prime minister personally
favored.
In a period of falling prices for
nearly ali products, people on the whole
do not feel that the sales tax increases
the cost of living. 1t has that erect,
Of course, but it Is concealed from
nearly all consumers, being levied
mainly ON the manufacturers. II has
also the advantage Of being easily col
lected. The wide list Of exemptions,
including all products directly from the
farm, eases the burden greatly. A
higher income tax rate, II it would pro-
duce the same amount Of money. would
be more Just, but In this country gov