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ORONO WEEKLY TIMES, THURSDAY, APRIL 3rd, 1969 REPORT FROM QUEEN'S PARK Alex Carruthers, M.P.P., Durham The intention of the Ontario Government to establish its own personal income tax system lias aroused cries of economic separ- atismi from opposition benches, but the decision is a direct re- suit of the failure of the Federal Government to agree on tax shar- ing arrangements with the prov- inces in the progressive tax fîelds. Ottawa's answer to the prov- inces lias left no doubt as to the Federal Government's policy with respect to taxation. If the prov- inces require additional revenues, they sliould raise their own tax- es lias bi'9-n the Federal answer. The result of this policy is now becoming apparent with the New Brunswick Government being cal- led upon to resign for the heavy tax burden it lias placed on the people of that province. The Ontario Government, with regret lias accepted the challenge, and expressed its intention to, es- tablish its own personal income tax prog-am within two years as part of a complete refo.rm of the provincial tax system. A provincial tax is not a new field for the provinces. For many years the people of Ontario have been paying provincial in- come tax equal to 28% of the federal tax. This tax lias been collected, by the Federal Govern- ment and returned to thie- prov- ince.' The,- present system, however, lias .several adverse features in- cluding: ( a) The heavy use by the Fed- eral Government of the income effort the province may wish to tax field prevents any significant make ln inereasing its revenue from this tax source. (b) The agreement with the Federal Government governing tHe collection of income taxes miakes it impossible for Ontario to adjust its income tax revenue without an across tlie board ad- justment tlirough the tax abate- ment system. (c) The Federal Goverament reserves to itself tlie riglit to maise the income tax rate witli- o)ut consultation with the prov- ince. (d) The present system denies the province any role in deter- mining the structure and method of app[ying an income tax appro-- priate to the province of Ontario. The imposition of the 2% soc- ial development tax for to cover the federal costs of medicare is an excellent example of Ottawa's unilateral action in the income tax field. Denied consultation in this respect the province is f orc- ed to burden thie taxpayer with refressive taxation to meet its share 'of these medicare costs. The answer to Ontario's fiscal prbeswould, therefore, ap- pear to be in the establishiment of an independent personal in- comt-e tax system. Such a system would ha-ve a number of advant- ageouts features including: 1. As a personal income tax-tax credit system, provincial and municipal taxes can be co-ordin- ated and thus, provide control over the level of both provincial and municipal tax burdens. 2. It can be 50 structured as to act as both a collection and pay- ment mechanism eventually elim- inating a large number of main- tenance welfare programmes, and could lead to a positive income supplement or guaranteed annual income. 3. It would allow for the dî- duction of a portIon of property taxes paid by individuals from their incomie tax thus replacing the 'present Basic Shelter Tax Ex- emption system. 4. It will offer awider scope for the redistribution of the tax barden. gainst payments of retail sales taxes, health insurance prem- iums and other régressive prov- incial taxes. Whether the Federal Govern- ment is willing to continue co-, operatio n in collection under this new system will be a matter for future negotiations. Recent ev- ents in Ottawa suggest that the Deparment of National Revenue may soon be replaced by a tax collection system. Ontario sug- gests that a federal provincial tax collection commission be est- ablished to serve botli levels of Government. Regardless of collection meth- ods a new income tax systemn is certainty for the province of. On- tario. DURHAM COUNCIL SETS MILL RATE The Durham and Northumbdr- land Counties Council lias struck its tax rate for 1969 at 16.7 milîs. The rate will' raise $1,662,823.88 and is based on an assessment of $99,579,292.1 Roads and brie.es will cost the counties a net expenditure of $970,100; Public welfare will cost $250,544. and the counties health unit $115,500. The chld welfare department will cost $58,- 100 and the counties, home for the aged $45,240. The regional study and plan- ning for the proposed regional style of government will cost an estimated $70,000. Grants to lios- pitals are expected to reach $32,- 000 and debenture payments $53,- 718.75. The total gross expenditure is $4,836,833.88. Credits of $3,174,- 009.50 reduced the total expend- iture to the net figure of $1,662,- 823.88. Provincial Personal Income Tax lbert's Toxaco GENERAL REPAIES Phoite 983-52,19 Or » CAN ADIAN IMPERIAL MeQuade was released from Bowmanville Memorial Hospital late Thursday following surgery for removal 'of a small-calibre bullet which police said lodged in the fleshy part of the upper arm. In answer to a question of how many arrests could be exp>ected in connection with the case, the OPP spokesman replied "We've got further- people to talk to." BANKOFCOMME CE Police Make Two Arrests In Shoetinig Provincial Police from th e Newcastle detacliment have char- ged twe men and expeet to make further arrests soon in connection with the Tliursday niglit shooting of David MeQuade, 19, of RR 6, Bowmanville. netli Wilson, 18, also of RR 2, Bowmanville,1lias been charged witli wounding and Wayne Ken- netli Wilson,. 18, also og RR 3, Bowmanville, lias been cliarged with attempted break and enter following police invesigation of the incident. Both men were arrested Fni- day afternoon and later released on property bail. A police spokesman said the shooting took place shortly be- fore 11:30 p.m., Thursday on Trull's Road, a sideroad, north of Highway 2 and west of Nicli- ol's Motors in Courtice. Th Ie Store will remalin open Thursday Nite MtIi 9 p.m. due tb the Holiday on Good Friday Open as usual ail day Saturday We have plenty E aster Goodies - Bunnies, Candies,,Gifts etc. FuI l ne of Seeds - Starters and Bulbs and some of the selection as follows: Tuberus and Canielia Begonlas in assorted v3lours .................13 in a box only 79e Gi ant Dahlias, 3 in a box asst. colours only 89c Gladioli, 5 different colours, ... only 5 for 47e Deluxe Grass Shears, economical price of $1.29 G.M.S. Haïr Spray, regular hold and extra hold, 15.5 ounce can only............ 77e Hceene Curtis Tender Touch Bath Oit Retgular $1.76 now only ............. $1.00 Westinghouse Electric Clock -AM. Radio Regular $37.95 SPECIÂL price ...... $25.95 ýýix Water Colour Markers, asst. colors .. 77c. Wonder Foam Pad and Ironing Board Cuver Regular $1.99 SPECIAL ,....... $1.55 Lady Beth Mini-Stretch Panti-Hose, size 10 - 11. Compare at ......... $1.39 SmiIes 'N Cuekies Miniature Chocolates Regular $2.25 SPECIAL 1 lb. box .... $1.00 Ten Heavy-duty Garbage Bags only ..... 89e Ail-purpose Green Fatique Mats, yours for 89e Youth and Teenager Rings only ..59c --$10 Orono 5c to $1,00 Store, WIIERE THEIRE'S'MORE Phone 983-5401 on liii nuiimo ybalance. W nhdawal privleges. Ev edep osi t imade b efdoir54pril.15.91969 eaifis inteié'st fidm c54pril lst. _77.9.