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FEBRUARY 21 / s C i Tax Ri Gorporation lTax Kise Will Retard Busi I e T ar USIness, D W in Attack Calls It Helpless Exhibition of Government # # Failure to Point Way to Economy; Asks for # # # Withdrawal, but House Gives Second Reading FEARS CONSUMER TO BE PENALIZED The increase in the corporations|continued. "And on top of that tax would discourage business,| there is a surlali of 25 per cent. The + f ts , | sooner we ta honestly to the check empIO)ment. and penalize th€|pupni;c about taxation, the better it consumer, Opposition Leader George | will be for all concerned. Every tax Drew declared in the Legislature imposed on business is an added yesterday in appealing for with.| °OSt to the things purchased by the drawal of the amendments whichz':::su:wr'wl h boost the tax from 2 per cent to 5 S 40f thdrawal. per cent. | "If this Government wants to give Second reading was given the |leadership to the Dominion, then amendments after an hour's debate| withdraw this act and proceed on shared equaily by Colonel Drew and | the basis of the present tax. There Attorney--General Conant. The Oppo-- is nothing so destructive to legiti-- sition Leader denounced the bill as mate business as not knowing from "vicious" legislation and wrong in year to year what the tax position principle. It would act as a brake|will be. Retroactive legislation is on the Province's war effort, he wrong at any time. Let the Gov-- claimed. 'ernment do what the Prime Minis-- *"This act is simply a helpless ex-- ter said in his budget; give leador-- hibition of failure on the part of ship at this time to the whole of the Government to point the way Canada." to economy," said Colonel Drew.| In moving second reading of the "There is no justification for it bill, the Attorney--General said the other than the Government's deter--| retroactive features of the bill, with mination to go on spending large its limited application, would not sums of money, Members of the Gov-- ' produce any very substantial amount ernment are under the delusion for the current fiscal year. He esti-- \ that so long as a tax comes from mated the sum as likely to accrue certain quarters it does not hurt to the treasury before March 31 as the taxpayers. The sooner it is re-- $315,000. The Government had been alized that it is not the wealthy few | in receipt of representations regard-- who pay these taxes, the better it i ing the provisions of the bill, espe-- will be for the Province as a whole. | cially the retroactive clauses. Recog-- ¢ These corporations, such as railways | nizing the uncertainty of what might and insurance companies, are trust-- prevail two years hence, certain ees for the wealth of the pseople. amendments were made by the Gov-- "This is a case of robbing Petcr'ornment which restricted the retro-- to pay Paul," continued Colonel active features. Drew. "When you increase the tax| "The effect is such that all com-- on the C.N.R., you are increasing panies coming within scope of the the obligation of the people them-;hill will, in final analysis, be taxed selves. The Prime Minister in his for a total of twenty--four months' budget address stressed the need o ' operation," said the Attorney--Gen-- the Province giving leadership to eral. "I want to stress that the the Dominion. I agree heartily with partially retroactive features only that sentiment. But increasing tax-- |apply to a portion of 1939. Most of ation is not the way to give leader. ' the increase will be collected in the ship. ifis('nl years 194041 and 1941--42." "The most effective way to give| Mr. Conant said the provisions leadership and the most effective| were retroactive only in the sense # contribution we can make to the of making a company subject to the successful prosecution of the war increase on that part of its business would be to reduce taxation in | falling in 1939. Most companies end-- order. that business may operate ed their fiscal years Dec. 31, and, freely. under the existing law, which the "At the very time that this Gov--| bill did not alter, they had until ernment should be doing this, we|April 30 to pay the tax, including | find a tax measure which increases both the previous and the increased | an existing tax by 150 per cent," he |tax.