Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-09

y
as had been the case,
Since the Canadian payments be-
ginning last September were for
1912 taxes and were being taken
from 1912 income, it could be said
that from September to December
Canada was then on a Ruhl plan.
But that wasn't the case. really.
For eight months of 1943 payments
were yet to be applied to 1912
taxes.
How II viii BE done.
Now how is Canada to change
to a present taxes out Of present
earnings system? AS it was ex-
planned to me it will be about as
follows: One Of these days-Marcn
81 was mentiOned-the minister of
finance will declare that the income
tax payments made from Septem-
Der through December-four months
will be applied to 1912 taxes and
the remainder of 1912 taxes will be
forgotten.
II will be stipulated further that
all income tax payments made since
January, 1913. and for the rest of
l943 will be applied to l943 taxes.
The 1912 income tax return which
was to have been filed in September
will be filed soon after the an
nouncement Of the forgiving of the
eight months of the taxes. The
slate for 1912 will be clean.
And as easily as that Canada will
be on the Ruml plan.
Opponents of the Ruml plan in
the United have charged that it
would benefit the very rich. Canada
acknowledges that it probably does.
for this reason: A very rich man
operates rather on the order of
a corporation and most likely he
has the money already set aside
out Of his yearly profits to pay his
income tax Now if that tax is for
given he will be in pocket that
amount he saved Canada, however
has thought some of making a
distinction concerning the very rich.
But it has about reached the con-
cluSiOn that administrativelv it NAV
be more bother than it's worth and
ultimately the government will get
that money in taxes anyway.
1912 Canada Schedule.
There may be a measure of con-
ISOLATION for United States taxpayers
in knowing the size Of the income
tax the Canadians are having to
pay according to the 1912 schedule
Let's look in on the Canadian
equivalent of our old friend, John
Doe, VINO is married. but has no
children. Say his income is $500
year In 1910 his tax was $50
In l94l it was S75 In 1912 it was
s2l7. tOf this sum $1O8 is refund
able to him after the war; Say
Johns income is 5000. Before the
war his tax was SIT. In 1899 1t was
5000 In 1910 it was S604. In 194l
it was 1000. And in 1912 it was
$1,878 $500 refundable after the
war;.
A word about this refundable
phase Of the tax program. 1t is, of
course, form Of compulsory saw
ing, That being so, payments on
established contracts for life insur-
ance, pension and retirement bene-
fits, and principal payments on
house mortgages were accepted in
lieu Of the refundable portion of
the tax. The maximum refundable
portion Of the tax is $500 for single
person, 81 900 for married person
without dependents and $1,000 for
a married person with two depend
ents. Persons over s. are relieved
Of the Tefundable portion of the
tax. Abnormal medical dental and
hospital expenses in excess of 5 per
cent of the total income are de-
ductible from the taxable income.
There are few gaps in the Cana
dian tax fabric. 1t has 100 per
cent excess profits tax Under this
provision no corporation can have
alter taxes more than 70 per cent
Of It's pre-War standard of profits.
Moreover there is an per cent
manufacturers sales tax. There is
a % per cent luxury tax on such
items as jewelry silverware, etc.
Taxes on beer and spirits are more
than twice the pre-War level The
tax on cigarettes is at the rate of
Is cents on 20 cigarettes. The tax
on soft drinks is more than so per
cent Of the manufacturers price.
And there are provincial taxes, be
SIDES. In the Province Of Quebec
there is a general sales tax of 4
per cent.
(Copyright, North American Newspaper
Alliance me-
r.