F. PR!

14. 1937

qfllljl’. (‘HARLOTTETO\VN_

GUARDIAN

rags THREE.

$63,288 r is Budgeted For

Deficit

Un Current Acct.

Tax Increases Include 2cts Per Galllon On Gasoline, $1. On Motor Registration Fees, Heavier Motor Truck Taxes, And I00 p. c. “Increase On Life Insurance

Companies

yellowing is the conclusion of the “., ‘ Speech by Premier crtmpbell inthe Legislature on Monday niShlii

“Turning to the other side of’ the picture, we come lo consider the question of revenue for the year. The principal increase of revenue may be summarized as follows:

"General taxation, an increased

estimate of $15,000. ‘That includes

income nnd personal property tax- atlon, land tax, corporation taxes, and general taxation of that kind.

Life insurance companies, 1056, $6.091; estimate $12,000, sn in- crease of $5.000. That comes about ‘n this way. The present tax on lifc insurance companies is 1 per cent. per premium income. Look- lng at the situation we found that ln the other provinces they are paying from 2 to 3 per cent, and there seems to be no logical rea- sou why the tax should be less in this Province, because the under- ixtritcrs’ rates are fixed without regard to provincial boundaries. and we felt that taxation should ho fixed in the same way. we sllllll therefore introduce legisla- tion to increase the rate of taxa- lion on insurance companies from l lo 2 per cent, which ls esti- mated to bring an increased rsv- enue of $5,000.

On Banks, an increase of $13,- 000. This is estimated owing to the improved conditions and in- creased business.

Domicile companies. 1936. $70,000: estimate for 1937, $75,000, an in- crease of $5,000. In this connec- tion the Liberal party may say with some satisfaction that since these domicile companies were in- troduced here in 1931, the total revenue deriv by the province up lo the end 1m year amounted lo $256,000.

succession duties. 1935, $19,836: i936, $42,010; ; estimate $45,000 an in- crease o1 $2,000. This increase is partly due in improved collection methods. partly to an equitable adjustment of exemptions which was made during the session o! 1038. In the opinion of the gov- ernment the succession duty is the fairest and most just form of taxation and those achievements in. exemption which we made in 1038 whereby people who were not members and dependents of the tcstators‘ family were put into a category where they received light exemptions. While we do not be- lieve it creates any hardship. it a-rjj as the years go on produce a considerably increased revenue to the treasury of the province.

Amusement Tax Increase

Amusement Tax: in 1936. ap- proximately 85000; 1930, $11,000: estimate $14,000. This increase is partly due to a slight increase in the rat-es. The government felt that if anyone in the province is irblc and Justified in paying an in- creased contribution to the treas- ury it should be those people who can afford to attend amusements and entertainments. For that roa- uon the scale of rates of amuse- mcnt taxes was revised and slightly increased. But that accounts for only apart of the increased rev- enue. The amusement tax stood forth as only another example of the lax and almost non-existent system in vogue in this province In connection with the collation of taxation. Any person who came along and offered to pay the treasurer an amusement tax was received with open hands. ‘The lax was taken and not turned 307m, but no systematic effort - ln fact no effort at all — was be- lnr made to collect the tax. And 5o by a systematic imnrovement in the method of collecting this tax. in addition to the slight increase in rates. we have been able to estimate for £14,000 revenue from

sluice‘ Marv fl

Canadian Legion Home

Tonight at 8.15

FREE GAMES SPECIAL PRIZES

, i

._._____. |

Guard of llonour

Training in Uniform at Drill shed Wednesday

. "fight, April 14, 1937, at 7- pan.

' reduced by 25 per cent.

0.C. “A”, Coy.

this slnsle source which should hurt nobody, as against approxi- mately $5.000 two years ago; or an increase of $2.400 over last year.

Gasoline tax: in 1936, the amount collected on this item was $232,- 575~ For the present year we are estimating for a revenue of $300,- M10. an increase of $67,500. the de- tails of which I will go into 1n an. other connection.

Motor Fees Increased

MOM!‘ Vehicle > Registration: $111,810 last year; estimate for this year $130,000. This is partly due to the estimated normal in- crease of registration, partly to a $1.00 increase in the- registration fee necessary to provide a new System of registration whereby the driver's license of the automobile is separated and distinguished from the registration certificate. And in the third p'acc the increase is partly due to a general equit- able revision oi system and scale of taxation on the registration of motor trucks. This last mention- ed division is one which has caus- ed the government a considerable amount of study. It was obvious that the existing systzrn. based as it was on the weight of the truck alone, without any consideration of the load, was not only unfair but was depriving the government of a proper amount of revenue, and was depriving the roads of the province of a proper amount or protection. A great many trucks were registered as a ton and a. half truck, for $21 and were carrying loads up to six or seven tons. There was no method what- ever of checking on the weight of the load carried. And it is com- ing to be a generally recognized principle that the weight of the load is really the most important factor, that a light truck with narrow tires, inadequate whee! base and improper distribution of load, does more danusge to a road than a heavier type of truck pro- perly loaded, with dual wheels and wider tires and a better weight distribution. As a. result of an ex- tended study of this matter the system has been inforce in~ the province of Nova Scotla for some time, of basing the registration of trucks on the combined weight of tuck and load. New Brunswick last year had the system of re- glstratlon based on the weight of 10nd alone. Prince Edward Island had the antiquated system weighing the truck alone-not of weighing it, but of taking the figures given by the person regis- tering the truck. A conference of the officers of our government and the governments of Nova Scotla and New Brunswick was held lit Moncton. and after con- sideratlon of the matter it was unanimously decided that the only proper systematic method of regis- tering trucks was the method bas- ed on combined weight of truck and load. The three lvlaritlme Provinces therefore decided to accept that basis of registration. The same basis is in force in the Province of Ontario and I believe in ‘the Western Provinces. and it has been seriously recommended for adoption in the Province of Quebec. So that in this direction we are not merely following in lino with the system in which practically all the provinces have accepted, but with the only fair, equitable and adequate system.

There was a considerable , dif- ficulty in fixing just what might be considered as an equitable rate. Aftcr the government had published a rate which we felt.- and which 1 still feel -- was ap- proximately proper and adequate. ws were waited upon by a dole!!- tion from a truck drlverssssocil- tlon. They admitted that the previous rates had not been pro- perly adjusted and had not been in any sense adequate, but they felt that the scale of rates which the government had adopted was too severe and radical a. change, at least for one step. After lis- toning to their representations the government in conference inform- ally with the members o! the cau- cus, felt that there was some merit 1n the representations of the truck drivers, particularly from the point of view that such a radical change at one step would cause a BT90‘ deal of dislocation of the present state of affairs in this direction. After this conference we were 51,19 to decide upon a final resd- "r .0 which is now in force, whereby for the present year the rstes which we had put in force, with a fow excePl-io - l" l0 h" We feel that this reduction and the ed017- tion of the new WW9!" "1 "35"?" tlon sooordins i0 cmlblmd - of truck and load. will Pmlllcl! I result of fairness as between the different owners and operators: yj ce s slightly increased revenue for the government. al- though that was not our primary object; and will a 8H0- wally incrensinfl arse-out w the

umber of trucks running

P.E.I. Hlghrs.’ I

highways against an overly-in- creased n

at random and without any ade- quate control or restriction.

General Taxation

"I mentioned at the outset that we were estimating for an in- crease in general taxation. In 1935 the amount of revenue on this item was $138,918. We felt last year that the situation in this respect was becoming alarming, that the amount of impald taxes throughout the province was hav- ing a serious detriment upon the administration of affairs. While there was some sympathy for those who through stress of the depression had been -unable to keep their taxes up, we felt that this was not the whole nor yet the substantial part of the difficult situation. We felt that the grow- ing increase and accumulation of arrears was due not so much to any temporary depression as to the negligence, or reluctance, of suc- cessive governments to attempt any systematic method or to make any systematic effort in the direc- tlon of tax collection. It was get- ting to the stage. Mr. speaker. when even the conscientious and. more or less well-to-do citizen was saying to himself and to the gov- ernment, ‘I am not going to pay any more taxes because while I have been conscientiously doing .my part in paying taxes, my neigh- bors haven't been paying taxes. and the government. has made no effort to compel them to do so. The situation became so alarming in this respect that we decided that some drastic step had to be taken, and with that in view we appointed a number of special tax collectors; one full-time man and two others, part time men. It was-the duty of these officials to go through the country, interview those whose taxes had got so far in arrears, finding out why the accumulation had piled up, mak- ing collections in whole or in part where possible, and-perhaps more important than anything - mak- ing complete and systematic re- ports to the provincial treasurer. Largely owing to this determina- tion of the government and the increased efforts made by the treasurer and by the special tax collectors in connection with the systematic cooperation of the re- gular collectors. the general tax collection of 1935. amounting to W"! ")0. vcs incrased in 1936 so $104,000. I think a very creditable showing for an increase in a single year. With that in view. and con- sldering the fact that a good deal of the work of the special tax col- lcctors last ycar wcs lorsP-iy groundwork and preparatory 9° actual collcctlon, we are making an estimate for 1937 in collection of general taxes amounting to ap- proximately $210,000. as against $138,000 two years ago. This col- lection, this increase, with in- creases in every classification of those general taxes, is not achiev- ed by a single increase in any of the rates of general taxation. The increase in the revenue from this item is solely due to increased ef- ficinecy of collection.

Federal Collections

“It is further proposed during the present yea-Y. if satisfactory arrangements can he concluded with the Department of National Revenue at Ottawa, that the col- lection of income tax should be handed over to be administered by that department; The difficulty has been that in this Province the provincial treasurer has no ade- quotc machinery for the collection of income taxes. The personnel is not sufficiently large. 1f we were to commence a systematic collec- tion of our income tax we should require increased office space which would mean moving out of this congested building. It would also mean additional machinery. and a considerable. additional staff. To meet that difficulty we feel that it is only right and expedient that we should accept the offer of the Dominion Government to collect our income taxes. We feel sure that this will result not only in a. greatly increased revenue from that item, but it will set free the machinery and personnel of our treasury department for a more active and more efficient adminis- tration of the other items of rc- vcnue. As I said before. we do not purpose to make a single increase nu any of these items of general taxation; no increase in land tux, no increase in personal property tax; no increase in income fax. In fact, Mr. Speaker. the govern- ment purposes-mnd a bill will be introduced to that effect-to pro- vide a. loliglfolt want in the ex- emption of a larger portion of the income of msrricd persons and others who have to support chil- dren or other dependents. This we feel will be of great advantarie to those taxpayers who have to support n family on a. small or limited income.

"As I have indicated before, the government purposes to reduce taxation in another direction, namely by making to fishermen. farmers and other operators of stationary engines a full rebate of the gasoline tax. One section of the press editorially stated not long ago ‘that the government was tax mad. I submit, Mr. Speaker, that anyadjustments of taxation which we have made are against those who are capable of paying taxes; whereas these two reduc- um'II-flm relief cf married per- m“ wnh/familles and the relief of fishermen and others in the di- rection of gasoline taxes - are being made by this government for the purpose 0f relieving those classes of citizens who are least able to pay taxes and to contribute to the provincial treasury. The only persons who will pay an i11-

’ income tax are those who up to the present have been con- cealing the true state of affairs of their income from the provin- cial government.

"Raving briefly outlined the sit- uation as regards revenue and ex- penditure, I wish to deal very briefly with r-c-ioosed capital ex-

penditures f the year. Rights of way. $2,000; mrmanent bridges. 08,000; steel culverts, 015,000;

renovation of the Law Courts building. $15,000.

Law Courts Building

"I think perhaps there is no sug- gestion which has so constantly and persistently forced itself on the attention of grand juries in this province as the condition of the Law Courts building in Char- lottetown. I utas speaking to an English gentleman the othernlght and he told me that he was a member of the grand jury in the year 1016. and the grand jury then brought in a recommendation that the government should do some- thing to remedy the deplorable condition of the Law Courts build- ing. Sinoe 1916 practically every grand jury that sits in that court has made its unavsillng recom- mendation that something should be done. An examination of that building shows that its unsatisfac- tory condition is not confined to the surface, but that substantial renovations are necessary. The fire insurance underwriters have wam- ed us that the building is a posit- ive danger from the point of view 0f fire risk. With all these things in vie-w, with the urgent recum- mendations which we receive every year from grand juries who sit there, the government finally came to the conclusion that the time has come when something must be done to remedy the state of affairs