Evening star., 1942-09-13
Senate
Situation Different.

StthdIiUl
This does not necessarily mean
that the United States could or
should copy the Canadian scales. 1t
might be argued that the borrowing
ability of the larger nation is much
greater, that it can spread its burden
out over longer period.
In the Canadian schedule, of the
$40 paid by the man in the 81 500
bracket, $24 is the refundable por-
ton, to be paid back after the war.
OF the 81 ,662 at the $1,000 income
level, $500 is to be paid back. For
$4,000 incomes and above, the
amount to be repaid does not ex-
ceed $1,000, while the tax rate rises
steeply.
The Dominion's method of COL
lecting the tax and forced savings
of salaried employees from the en-
ployer, works like this:
Collections begin with the single
worker making as little as $13 g
week. from whom a few cents is
taken. When the $25-a-week leve,
is reached, $3.50 is taken from the
single worker, % cents from the
married man with two dependents
From there on, the scale rise;
stif1y. The single man making S4(
week has S9.15 deducted and the
married man with two children
1881 a week.
Consider the man making ST.
a week. If happy bachelor, he
gives up S23.23, if married with two
children, S1706.
In addition to forced saving.
through payroll deductions present
plans in the Dominion call for con.
tinued victory loan" campaigns t
bring out large-scale voluntary in.
vestment of savings.
Bond Drives Short.
Rather than run a continuou.
campaign to sell its bonds, as in thu
United States, the Dominion ha.
adopted the principle of a whirl
wind campaign about every eigh
months. Another one is expected
in October, and there is much in,
terest in seeing how it works out il
combination with the forced say
ings operation just started.
Thus far, the dominion has de
pended much less upon the banks tt
finance her deficits. than has tn,
United States, in an effort to avoic
imitation of bank deposits. Onl,
about one-sixth of the Dominion
debt is held by the banks, agains
close to one-half in the Unitet
States.
Also, the Dominion depends les
on voluntary effort in its bond cam
paigns. 1t has widely used all form
of advertising and paid small com
missions to statesmen. The news
papers have set up a Publisher.
War Finance Committee, an
Finance Minister J. L. Ilsley sal
recentlyH
The newspapers have played
vital role in our bond sales"
Profits Tax Boosted.
Canada is undertaking to des
with wartime profits by boosting il
excess profits tax this year to 10
per cent from rs per cent last yea
But, so as not to remove incentiv
to economical and efficient opera
ton, 20 per cent credit is set u
to be repaid after the war. This
somewhat similar to the Senat
Finance Committees proposal
Washington involving a 80 per Ger
excess profits rate, with refund {
10 per cent Of surtaX and exec
profits tax after the war.
Despite full employment, sub
stantial wage increases since I'll
start of the war and an over-a
price ceiling in force since la.
December, the effect of the intensi,
war effort on living standards
becoming apparent.
Because of the per cent SALE
tax and other factors, cost of MANI
factured goods generally is higl
1T makes our mouths water to rea
department store advertisements i
newspapers from the States" ss
Canadians.