Imperial Valley press., 1942-09-01
CAPITAL TALKS
by
Peter
Edison


that if you want to know what life
in the United States is going to
be like six months or q year from
now or if you want to know what
it would mean FOR the United
states to get in this war a little
more than the present ankle
deep" participation, all you have to
do is take a look at Canada today
Jack Canuck. of course, dived
into this war over two years be-
fore Uncle Sam stuck in his big
toe. That gave the Dominion prev
ious knowledge of What the Wa,er
was like. and how muddy and rocky
it was on the bottom.
Canada discovered the crags and
cross currents of man power short
age. material shortages, need for
increased revenue, price freezing,
Job freezing, curbs on credit buy
ing and a lot of things like those
long before the United States did.
Take taxation. Canada has a
wage tax that begins at ! per
cent of wages for single peO-
pie making $500 a year or $1,000
for married people with de-
pendents. This wage tax Is
levied on the whOle income,
and not just on excess over
the minimumS.
There are, in addition, minimum
saving requirements, running from
$50 for single people making $7O0
a year and S25 for married people
making $3.50 on up to $500 Tor
all single people making $4,000 or
more a year
These two taxes are in the nature
OF credits against income taxes,
and here the fun really begins Tor
Canada has in effect put a con-
fiscatory tax on all income over
$4,000 a year for single people, or
5000 for married people with de-
pendents. People making $1,000
year pay $500 income taxes II
single. S215 if married and having
two children. All these taxes are
deducted from income, right at the
source each pay day.
AS if that weren't enough, there
is an per cent manufacturers
sales tax and a 25 PET cent tax on
top of that for luxuries such as
furs and jewelry.
WORLDS HIGHEST TAXES
So heavy are these levies that
in January, 1912, the Dominion
had to suspend the collection OF
income taxes by the provinces ana
municipalities. This had to be done
for the salvation of the taX-pay-
ers-for at one time before the su-
spension order was put into effect,
Montreal people who made S2oO,-
600 a year actually were called on
fol more than 100000 a year IN
taxes. In return for surrenderlng
these local income taxes, the DO
minion was forced to pay the local
government a subsidy, or else as
sumo their debts.
Canadas taxes today are sup
posedlY the highest in the world
and. in the opinion of the Hon. j.
L. Ilsley, minister of finance, the
extreme limit of what the country
can do
1t is taxation of that kind which
the United States may have to face
if it is to get into this war all-out.
Take price control. There
are far fewer Canadian ex-
emptions to price legislation
than in America. But there is
a provision by which wage
earners are paid bonus If the
cost of living goes above a GER
tain fixed base. 1t is paid as
percentage of S25 weekly,
which was set up as minimum
family budget base. If the cost
of living goes up 10 per cent, all
workers get $3.50 a week in
crease, regardless of what their
salaries may be.
So effective mas the Canadian
price control been that cost OF
living has advanced only 2.5 per
cent since the 'bonuS law went into
effect last October. First bonuses
are to be paid this month and Will
total an estimated million dollars
a week.
For the United States, similar
bonus would cost a minimum OF
10 million dollars a week
Take manpoWer. Canada now
has gone beyond the equivalent Of
full employment It's 10000 unem-
ployed are all definitely deter
mined unemployables. Five million
of it's population of 100000 pop
u,ation are emGioyed. Three Of
those five million are in the war
effort or essential industries. From
now on the problem is to get more
of the two million shifted from
+ the non essential industries.
To that end, unless the gov
ernment gives its approval, no
one can be fired, no one can
quit his job, no one can change
his job, no one can take job
i'm essential industry.
And no ore can get or give an
increase i'm wages.