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ORONO WEEKLY TIMES, THURSDAY, OCTOBER 17th,1968 REPORT 0F THE ONTARIO SELECT COMMITTEE ON TAXATION- by Alex Carruthers, MPP On September l6th, the re- port of the Select Committee of the Legislature on Taxation was presented ta the Govermment by the Commitee's chairman, John H. W'hit'e, MPP for London South The Committee's task was ta evaluate and comment upohi the Smiih Report. The following sig- nificant facts outline the impor- tance and the work of-this Com- niittee. (1) The Smith Report on Tax- ation took some four years ani four months to prepare. The Se- lect Committee appointed on May 31, 1968 was ordered because of the. Government's concern over INTRODUCTORY SPIECIAL Sugar and Spice COTTAGE CHEESE Wth CALIFORNIA RAISINS Nutritions, Delicious, Luw Cal- orie Cottage Cheese., Available now with that special flavour. TRY IT TODAY 16 oz. size regular 37e During October 32c PHONE 623-5444 FOR HOME DELIVERY Glen Rae t Dairyf BOWMANVILLEt tax reform, ta have its report compfleted -before September 17. (2) Through the 14 weeks from June 4th ta September 6th the Committee received 110 dif- ferrent delegations, studied 318 briefs. (3) The Committee compoSed af 12 members drawn from ail three parties in the legislature summed up its overall aim on page one of the report in the fol- lowing words: The result af the implementa- tatioýn ai these recommendations would be a substantial shift in the hurden of taxtatian from the poor to rich, from smail busi- nesses ta large, enterprises, fromn the less vigaraus sections ai the province to the more buoyant areas. IThfortun'atély the Toronto press in particular, i'ailed initially to grasp the Cammittee's" basic objective. The proposai ta ex- tend the) Provincial Sales Tax ta sluch items as food and child- ren's clothing was stres5ed and littie or no attentiot given ta the other recammendaions. In arder that a reýpsionsible o- pinitn can be formed with re- spect tao the Cammittee's report .the iollowinýg facts should be given consideration. (a) A comparisan of the tax ex- emption system as now in use with a tax credit system f£avours those in the iower income brack- et. (b) Under the tax credit sys- tem if the average persan con- sumes $400 worth, ai food per year and the tax is 5 percent the per, capita credit would equal $20 per persan. Thus a family of 5 spending $2,0,00 oh food, would receive a year end inicome, Vax credit af $100. (c) A. family aof ive, with no taxabýle incbme whatevcr, would receive a rebate of the full $100 regardless af the amaunt they spent an food. (id) High incame families con- sume nmore. expenSivefod so with a fiat rate credit uf $20.0 per persan the low itcome tax- payer has a distinct advantage. Under the present exemption system bath the low incarne and d high income individuials are on the same: basis. (e) At present, on itS restrict-c ed base, the Retail Sales Tax 1 yields iappraxiamately $88 million a for cadi percettage point.* At9 the present rate ai 5 percent, this a totals $440 milliQn. t (f) If this tax were braadened, to include food as the coxmittee I Badminton Opens At High 'Schooi, Thesday A Badminton Club is beýing farmed for the local area this year with the activities ta take place in the gym at' the Clarke Higýh Schaal. Everyone is invited ta take aut membership in this organization and ta take part in the activities; this season. The op.ening night wiIl be held this caming Tuesday, October 22 at the High Schaol. Plan now ta be presett. 25 Accidents Inves- tigated, 2 KiIIed The Ontaria Provincial Police detachmenît in Newcastle reports officers investigated 52 accidents during September, including two fatal mishaps. Two persons were killed, 28 persans were injureýd, 330 per- s.Ons lwere charged ahd 120 per- sans werei warne-d unider the Wighway Trafiic Act. The depart- ment ýalso reports that 120 ve- bidles were safety checked during the month. Ten break and enter investigia- tions were conduoted durinýg Sep- tember b:oostitg the total for the year ta 143 investigaions. A to- tal of 146 thefts have been re- ported durin'g the year, indluding 1in September. The value af af stolen property reported dur- ing Septemnber amoutits ta, $968. and the value for' the year ta date stands at' $23,854. The OPP safletly 'thaýught',for the month is: "By 14eeping èon- stantly >alert and developing safe driving habits, you can help pre- vent accidents. The rule for de- fensive driving is - look ahead, thýink ahead, act ahead.ý Count ies Conside'r Hiring Planning consultant Acting an a recommendation 01i its speicial advisary and ca-or- dinatîng cOnmmittee ai the United Counties Cauncil hýas agreed ta in- Ivestigate the hýiring ai a planning consultant to act on a regional evel. The move is seen as an answer ta the threat ai regiýonai government. Under the regional administration the, United Coun- ies stand ta lose Darlitigton and Bowman"Ille to Oshawa. Souith Monaghan Townsh.ip ta Peterbor- ough and Murray Township ta Trenton. Wardcn W. 1. Thomas said the United Counties is large, enough nd rich ehaugh ta stand 11t. self. Planfring, he sýaid, wouid Promaote the necesary ca-ordinja- Jon between the municipalities. recommen,s each Percentage Point would raise an estimated $250 million. Thus if the Sales Tax were re- ducerd ta 3 percent each percent- age point would raise $250 million times 3 equals $750 million. (g) The difference in the tax raised is therefore $310 miillion this amount wauid be available to the government for rebate ta l0w income tax groups Providcd no additionai revenues were re- quired above the $440 million level. (b) Another major advantage of the tax credit system is its flexibilijty. It i5 Possible ta vary the amount ai the credit with the age ai the recipiein o r any other chariacteristie considered ta be relevant. This would be a distinct adventage ta elderly people on fixed incane,. Wi)FPr the Goverýjrn-xnt, the tax credit means a smaller loss in revenue whieh can be reilected in a iower tax rate.". (j) The Salis Tax credit system would require ail taxpayers ta file an incarne tax return but this shoCuid fot prove to be a disadvantage. The palicy If introduced, would appear ta be one Impor- tant mmethod ai attacking poverty. DISTRICT HYDRO PLANT HIGH ON LIST According ta the Lake Ontaria Regional Develapment Council, Ontaria ilydro bas placed con- structioln ai the power generating pla nt at Wesleyville high an ts ority list ai future works. 1The' LORDC newsletter, pub- Report From Queen's Pa 1rk lished recently statcd that the plan originally, considercd as a twvo-millioni kilowatt generator, may be increased to an output of three million kilowatts when Construction . actually starts a- round 1970. >The newsletter quoted Hydro chairman, George Gathercole as saying the plant has been placed ahead of anothier similar unit ta be buîllt in the Kingston area. No decision' has been reached on whether it will be a coal-fired or nuclear-fuelled plant. DR. PETER J'OHNSTON VETERINARY ORONO, ONTARIO OFFICE IHOURS: Tuesdays and Thursday frorn 4:30 pan. to 7:30 p.m. Saturdays from 10:00 uam. ln former office of Dr. Taggart, Park Street, Orono Full time service wiIl be available after December 20th ANNOUNCEMENT Closing For Winter The Chuckwvagon 'Restaurant wishes to announce that. we wifl be closed f or the winter. We wish to thank each and everyone, of our customers for their continued pat- ronage. -BANQUE TS- During the winter we wilI be catering to banquets. For information for home-style ban- quets or special occasions please phone 987-4775 or 987-4465 THE CHUCKWA"GON RESTAURANT CREDIT UNION WEEK The third Thursday of October is a special day for the more thOn 30 million credit union mem- bers* around the world. On this day each year, special thought is given to the many benefits made available.tbrough membership in the credit union. Credit union members save together, receive good dividends, and have the opportunity of obtaining low-cost loans for useful purpuses. In addition, mem- bers can get helpful advice on money management. Credit unions are chartered by the govern- ment and operate under law and goverment super- vision. en Ontario there are 900,'000 Credit Union members. This province is one of the fastest grow- ing Credit Union areas ini the worldwide movement. Many will celebrate International CreditUnion Day, Thursday, October 17. Some wilI hold celebrations throughout the week of October 13 - 19. Others will make the ,whole munth of October one of Thanxks- giving. The celebrations will take place i many of the 52,000 Credit Unions in 70 countries. The com- bined membership control assets in excess of $15 billion. This year's slogan "For those in need, of any land or creed"l reveals that the Credit Union tution. It is an organization of people dedicated to movement is more than a lending and saving insti- the philosophyof self-help and co-uperation. ORONO AND DISTRICT CREDIT UNION,