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WEDNESDAYU FEfiK%?RV 16, 1921, ---- SURPLUS Ge---- | TERS \ JGGLE FUNDS ' Hon. Peter Smith Proud of Deficit on Business ! Financing | hi soms ONTARIO WHOLLY SOUNDI wecitresiromenntieiirarenncocis receas Mr. Sinclair Criticizes Budget and Twits Farmers i f t as Spenders bnccvit creennterin it ies itenteereeneriaferentheentranue es Ontario's New Taxes Two--mill tax on all real estate transfers. One--quarter of one per cent. tax on all bank reserve funds. Extension of amusement tax to billiard parlors and pool rooms. Railway taxation increased from $25 to $40 per mile. Increased taxes under Mining Tax Act. Estimated Increased Revenue. Property tax........$. 250,000 Bank reserve fund tax -- 450,000 Hilliard parlor tax. .. 280,000 Mailway tax........ 420,000 Mining Act tax..... 100,000 Total increase....$1,500,000 Taxation of bank reserve funds, billiard parlors and poolrooms, and 3 all real estate transfers and an in-- creased measure of taxation on rail-- ways and mining operations were an-- nounced by the Provincial Treasurer, Hon. Peter Smith, yesterday, in his second Budget address before the Ontario Legislature. These new sources of revenue, Hon. Mr. Smith stated, would bring to the Province additional income _ of $1,500,000, necessary to meet estimated increas-- ed expenditure. ""'The Province of Ontario," said the Provincial Treasurer, amidst general _ applause, '"'is absolutely sound." He added that it would be necessary for some time to invade ithe financial markets in search of funds. Therefore, he felt it to be in-- cumbent upon all parties in the| Legislature to do or say nothing that' would have an adverse effect upon the borrowing powers of the premier l'rovince. "Hrouqg of Deficit. "I want to say that I am proud of the deficit we have this year," pro-- cceded the Provincial Treasurer. "I believe myself.that Governments in ':is country and in other countries wlhiould not be out to make money ~nd to make claims to surpluses. *J vwant to tell you candidly I would prefer to see a little surplus rather ithan a deficit, but we expected a imuch bigger deficit than that which we have, and I believe the public at large expected a much iarger defi-- git.'"' All the ordi y ¢ F said, amounte(jiut]g.rg?5?318?(?,%%1;':::('1 0}:'? dinary revenue to $25,078,094, leav.-- ing ordinary revenue short of ordin-- ary expenditure $802,748. "You will readily see," he declared, "that this .naEemcnt and _ this result could( l)a':e been easily changed to a more favorable showing had the account-- /m;_ng been treated as in 1918 and inl