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. Mun-mum? amx #lllrll'ltlt 1 lt Illirllit'l'lill _ REASONS FOR TAX! Hon. G. S. Henry's Amend. ment Forces First Legislature Vote The Government voted down. by I vote of 56 to 16, an amendment Iron Hon. George B. Henry, which Ile? mended a reason tor new taxation and which would have sent the in- come tax resolution back to the Com- mittee of the Whole. - -iiii; {richnie tax bill is now up me second reading and debate on the measure will be continued tacky. Division followed a two-hour m- slausht by the Conservative fore". led by Hon. George Henry. aided by, a halt doaen of his stalwarts. . The political battle raged almost trom the moment the House opened until 5.20. when adlourmnent was called. A _ . . _ Fiiii original resolution annual by Acuntt Premier Nixon was 3 $guta. tion enabling the Goyermnent to in: After two hours of heated mu. Mr. Henry introduced an Amendmem that the resolution be reigned we! Repeated challenges were flung across the floor ot the legislature dur- ing the two-hour tight. "ttrtg that the Government reveal the nature of its tinttneitt1 situation ma Mending to know how much the mo come tax bill would net the wry. bill. to committee with instructions that the Government lay before the com- mittee data providing n xenon why the Government. intended to increue taxation. instead of decreasing it "a Mr. Hepburn promised." The Opposition kept up . running fire ot aunts. directed toward the Government. tor ita alleged allure to 10m taxation. - 7 _ Acting Premier Harry c. Nixon in. formed the opposition that. he thought i, the Government. would net about. $5.- 1000.000 from. the bill. but he refused ORERUNNER of greater F political battles to come and of a long, fighting session, the Con- servative Opposition was defeated yesterday after a division on a motion arising from the income tax legis- lation. "t'i"Vioi"it-Jhe' 7 ruianeia1 statement. That would be in the Budget. which would be brought down " the proper time. he maintained- Second Reading. snowy before tr o'ciock. after the division. Han. mul Leduc. Minister of Mines. rose to introduce the bill tor second reading. __ _ _ . A Significant, was his statement t,hat the Provincial bill would (allow the Federal measure respecting a levy on net ineeme trom rents. These would not be exempted. he voted. .. An issue ot Victory bonds totalling about. 84.500000. which were part, of an issue of thirty to tortr million dol- lars. would be exempts he said. A niopayer must pay one-third ot the tax with his return we! must pay the bounce within tour months there. Mter. was mother change he men- ': "ssviCiyiii"ivii1 -ise" introduced shortly , regarding this," responded Mr. Leduc. Crt? bill. said Mr. Nixon. would be. ; brought in today. E Debate Adjourned. tion to an agreement to be made with the Dominion Government, which would provide the machinery for col- Ieetion of the tax. This was a. dis- tinct saving to the Province, he said. Collection Savings. "What are your arrangements with the Federal Government?" demanded Arthur Ellis (Conservative. Ottawa South). _ . -Hiii//e was no special agreement yet, but there would be upon passage of the legislation. replied the Minis- ter. "What, assurance are you giving that returns will be made to the mu- nicipalities?" asked Hon. '1'. A. Kidd (Conservative. Kingston). _ . day. The Legislature had scarcely got under way in the afternoon when a. demand was voiced that the Govern- ment set aside the income tax bill which had received first reading in Tuesday's Legislature. At the request ot Hon. George S. Henry. the Government agreed to adjourn debate on the bill until to- Acting Premier Harry Nixon had read a recommendation from Lieuten- ant-Governor Bruce asking the House to consider the income tax bill. Such a recommendation must come from the Crown. rcpresented by the Lieutenant- Gm'ornor. at the introduction ot any taxation measure, he contended. Such procedure as the Government was intraucimr--securing tlrtrt reading bolero a recommendation from the CrcWn--Was putting the cart before the hmsc. he said. He quoted Parlia- mentary authorities to support his contention. New Start Asked. Introduction of the bill on the Brst day, without. the enabling resolution. was an erroneous step. and the Home should withdraw the measure and start anew. he stated. _ " could not consent to that. I made a ruling yesterday which I believe was fair." replied Speaker Norman Ripe]. "Thetxt are many precedents tor who: was done yesteNay. " GG,kiGaiy he added. "to bring in a. written ruling within a day or two. Mr. Heighington---4%me of the bills _ upcn which you set a precedent are! not taxation bills at all. The Opposition tlnauy consented to introduction of thomeasure. ' 'iG;iriir"dGGariiai the OppOSI- "_' tion side tor a. reason for the new tax- tttion brought the repeated answer from Hon. Paul Leduc and the Acting Prime Minister: A _ . - Februarg IS "The Government, no doubt, says they are soaking the rich. Let. us see how the present. Government deals with the little fellow. They are even taxing a salary of $2.000. Increasing Tug. "The Government would be increas- ing taxation ot every municipality in the Province. That obviously would be inevitable," he said. Corporations and business houses uttered the heaviest tax in Ontario ot any Province. and the result, ot this new legislation wouidube to eve busi- my, cub-to the United States or to other Provinces. he said. "The whisper of death again." in.. terrupted a Government, member. "The longer you stay» in omce the louder the whisper gets," retorted Mr. Park) followed Mr. 38 (Cons. Toronto-High "Insult." "t think." he said, "that it was almost an insult to this House and Province that the Minister of Mines did not give some explanation con- cerning the necessity of this bill." "May I answer my honorable friend again." heatedly retorted Hon. David Cron. "It was necessary for balanc- ing the Budget, for paying the $30,- 000.000 you left.behind . " "This session," continued Mr. Baird. "will be the most serious this Province will ever have known since Confederation . " Mr. Crolr--Did you not endorse this bill " one of your meetings RELIEF GRANTS ' ANNOUNCED once ? I At the same time the Minister re- ivealed that the 1935 bill for relief Was approximately $35,000,000. of which Ottawa paid some $7,500,000; the Province, t20,500,000; and the municipalities, $7,000,000. Maximum Grants. Mr. Baird stated that if he found that increased taxation to this ex- tent was absolutely necessary, then he favored a Provincial income tax. 75 Per Cent. Maximum The maximum relief grants which the Province plans to pay to she municipalities during 1936 were an- nounced at. Queen's Park yesterday. They are said to be generally lower than the grants of preceding years. Under the new set up for the fi- nancing of nelief the Province is limiting its eontributions to a set mm which it believes is " per cent. at a. municipa1ity's genuine relief re- quirements. . The Provincial subsidy comes out ot the Provincial Treasury and the Federal Bid. Hon. David Croll, in making the announcement. repeated that the Province would pay no more and no less than the Dominion and that a change in the Dominion aid would be passed on to the munieipa'si- ties. "Ta-om». $5,748.000: Hamilton, St,- 351.000: London, $380,000; Ottawa, $1,300,000; Windsor} $?11iyi100;Prttr:r- The maximum amounts set; by yes- terday's sutnoutrtFlept 1o11oy: anvvumlvv. .. Itavw-n v-Iv-Vl'vvy _-____, ford, 8368,000; Oalt, $65,000; Guelph. 8160.000; Kitchener. $20th000; Sarnia. $66,300; Ctham. $55,800; St. Oath- axines, $255,000; Niagara Falls.- $375.- 000: Belleville, $70,000: Sudbury. $115,000; North Bay. $120,000: For: Arthur, $130000; Kingsville, $6.000: Luminance, $195,000; La Sane. $15.- 800; Riverside. $95.000; Sandvn'ch East. $135,000; Sandwich West, $82.- 000: Tecumseh. $74,000. Further figures are expected later for municipalities not mentioned in yetrterdas't', list. . Is Set Oath- l $375.- l, dbury. i Por. 1 ;6.000: ', sm- ':