CANADA’S BUDGET

Hokitika Guardian, 9 April 1932, Page 5

CANADA’S BUDGET

TAX INCREASES ASSURANCE OF BALANCE. (United Press Association.—B y Electric Tel egraph.—Copyright.) OTTAWA, April 6. Canada’s debt increased by 119,500,000 dollars for the fiscal year ended March 31st, so the Finance Minister (Mr -Rhodes) announced when delivering his budget. •Of this, fifty-one millions arises from the excess of ordinary expenditure over ordinary revenue. Special expenditures included forty-nine millions for unemployed relief, and fiTtvfive millions for wheat bonuses. Ordinary revenues were 327,719,000 and expenditure 378,743,000 dollars. Striking a note of vigorous optimism, he predicted that he could balance the budget and meet all obligations. “May 1 say that I don’t propose to indulge in prophecy, but desire to record a firm conviction we are ’not -far removed .from events which will herald the dawn of better days.”

As a means of balancing the "Budget, the Minister announced many taxation changes covering a wide field, The snlM tax is Increased from four to six per cent. A limited number of article’s not primary products, prevjously exempt, are made subject to the tax. The excise tax on all goods imported into Canada is increased froin two to three per cent. The personal ti.ncome exemption is reduced by twenty per cent., with an additional surcharge on the amount of tax payable, personal and corporate, on net incomes exceeding five thousand dollars. The tax of one per cent, on premiums received by insurance companies, except life, marine and- certain forms of mutual fire companies, is reimposed. British and foreign companies will also pay. The stamp tax on cheques, promissory notes, bills of exchange, is increased from two or throe cents- on amounts up to a hundred dollars, and six cents when over a hundred. A five per cent tax is placed on all telegrams, cables, radio messages and long distance telephone calls. Ten per cent, tax with a minimum of twenty five cents is placed on sleeping car berths. '

In view of the near approach of the Imperial Conference the Minister stated that no change would be njade in the customs tariff.

I Coming to the Imperial Economic f Conference, Mr Rhodes spoke in terms of highest hope and confidence. He said: 'While the world is close knit to-day in matters of trade and finance, fcs (never (before a’tn its history, we cannot expect tiornlal and prosperous conditions apart from a general .nation

'trend. Nfewthdww, 'Some one tuition *> crt'Oup of nations must tissuing the leadership nJ’.d point the way to that end. An opportunity unique in history is afforded British nations, whose representatives will meet at Ottawa. If the members who assemble here meet in an atmosphere changed with deter-

mination to approach their delibera- ' tions from viewpoint of mutual advantage there will result measures which will give a marked stimulus to Empirp trade. While these measures are primarily designed to stimulate trade within the Empire, they will re'ease forces and establish currents which may well iflow beyond our border.- to the eventual benefit of the world at large. Canada will completely balance the budget on the usual Governmental services this year, Mr Rhodes said. This

was the considered view of the Govern

ment after consideration of the revenues and expenditures. While unfortunately the estimates and revenues, which are conservatively 'based having regard to the present conditions of business, do not cover the special expenditures on unemployment relief, nor the indirect liabilities arising out of financing the Canadian national railways, it is nevertheless, in our judgment, as substantial a step in the direction of providing currency for every responsibility of the Government as would be in -the public interest to make effective in any one year under existing

conditions. To 'balance -the budget, to meet the usual 'Government services, the 'taxes announced by Mr Rhodes are estimated total fifty-five million dollars.