Lethbridge Herald, The (Newspaper) - June 25, 1970, Lethbridge, Alberta
I. Column Many Changes Required lly I- II. ASI'KIt Topic: "Many other change required to make real tax re form." "In Canada, we have had a succession of major studies 6i> lax reform iknvever. eaci: oj" these was incomplete: they did not look at the total la: system, Federal Provincial Municipal, bearing upon tax- payers." After this opening statement in its response to tha Federal Government's proposals for tax reform, the Ontario Govern- ment lays out its own version of what should be done to make Ottawa's tax while paper more accept able. Much of what Queen's Park offers is wcrthv of serious consideration, particu- larly where its counter propo- sals zer'o in on tax stimuli tor economic growth. However, this is not the forum for an analy- sis of the Ontario concept of tax reform. The point is that the Ontario document is still the document of one more Government, and at that, a Government whose major interest lies in the area of pie splitting, fiscally speak- ing, rather' than in convincing Governments generally to be- gin dieting. While Ontario at- tempts to speak for the taxpay- er, and in fact makes strong representations on his behalf, the mantle of taxpayer advo- cate, by definition, cannot fii 'Hisincss profits, whenever earn- .'d, arc fully taxed but business isscs arc only deductible for 'ive years after they are in- ;urred? Can we expect the fax to enjoy the respect of axpayers when the profits of a of associaled companies re lumped together and taxed as though earned by a single company, but the losses of one company in the group can't be offset against the profits cf the others, in calculating their tax- able profit? The tax law is riddled wilh penalties and hardships impos- ed on taxpayers by virtue of Ihe single and simple fact that they deal in business with mem- bers of their own family. These speculator injustices have been brought to the attention of the Government foi' mere than a decade now by responsible and objective national professional associations, yet the ref o r in bag is empty in this respect. The costs incurred by an em- ployee in travelling for his em- ployer's business are rarely de- nuctible: nor ai'e the costs as- sociated wilh refresher courses taken by employees learning new technology; or the expense incurred by a judge in buying legal texts to enable him to bet- ter perform his public duties. No reform proposal is offered for these and similar inequities. The present law contains sev- eral unduly harsh provis ions lions of Non their proposed trans- deducibility of the costs of professionals and the self employed in maintaining second offices in their homes; the refusal of government !o acknowledge the business ex- pense validity of companies sending the wives of employees to business conferences: the u n d u 1 y narrow definition of what constitutes a charitable organinntior. lo which one may make deductible donations: the unrealistic limitations on dcduc- tibility of contributions lo em- ployee pension plans: the ab- sence cf many elements of civil rights in tax avoidance disputes between government and lax- payer; Ihe fad that there arc no' constitutional guarantees as to the maximum amount gov- ernmenis al levels can take from cifixens: all of these and a host of other questionable tax fixtures will escape public consideration in the current lax reform debate, unless the Par- liamentary Committees insist Ihev he cc-nsidered. ..Thuntltiy, Ian, 53, WO THf LETHMIDGF HERAIB -17 Rains Boost West Crop Prospects OTTAWA (Cl1) (irain seed- ing is virtually on the Prairies and recent rains have improved growth prospects, Ihe Dominion Bureau of Statistics reported Wednesday. Weed growth lias been strong and initial signs of infection from lent nisi have been heav- ier than usual. Ihe bureau re- ported in Hie fifth of its tele- graphed roundups on Prairie crop conditions this year. The first solid estimates on "Although leaf rust has ap-J SASKATCHEWAN peared a little later than usual j With seeding almost initial infection is much heavier: pleted, recent heavy rains have than the bureau said. brought excellent growing con- "The rust area of West-era Canada will probably experi- ence a heavy leaf rust epidemic on susceptible varieties this The bureau said there will probably be considerably more ditions, although more warm weather is required. There has been some spraying for flea beetles in rapeseed crops. ALBERTA Heavy rainfall in the last two weeks brought a sharp improve- in the past ing needed moisture to other areas. While most grain crops arp now in good condition, it is GN- pected that yields of hay will lx> Wer than last year in central and southern areas and some fall rye and early-seeded wheat crops were damaged by hot, dry weather. In the Peace River district, however, moisture reserves are running low, causing imeveu crop growth. [n rep0rt on precipitation Asthma Dru Introduced O goides, lives in pillows and car- While searching for a more j before turning to research, said equitable and enlightened tax the mile, called dermatopha- system. it is worthwhile remem- bering that equity implies fair- ness. Unless these and m a n y other similarly inappropri a t e concepts are revised, no mat- ter much we improve the iystem in other areas, it will be acreages planted to wheat and oilier important temperatures, "the "bureau tor a! a lime when Canadian higher rainfall Ihan nor- wheat stockpiles exceed ma] sincc April 1 in Manitoba 1.000.U80.TO) bushels during glut Saskatchewan, while almost market be is- j an jncn Of rajn jn Alberta in Uie sued in three weeks. week to Monday brought its pre- Tlic government is trying to cipitation rate to just below nor- encourage famin's !u cul drastically on wheat production j Saskatchewan rainfall TORONTO (CP) A major j with a program that pays cash j reached 5.73 inches compared '.use of aslhma is a nearly-ill- j for wliealland converted to sum-1 a normal 4.29 and the visible mite in liouse dust. Dr.; nierfallow or forage crops. mean temperature last week Meantime, the crop outlook 62.2 degrees compared with has improved as rains brought a normal 60.1. r' e I i e I lo drought-threatened j Alberta's rainfall amounted to areas, especially in Alberta. 14.55 inchs, slightly under the Hay snd pastures generally normal 4.63. while the mean are good. j temperature last week wns 62.7 S p r a y i n g operations have i degrees compared with a rior- started against abundant weed mal 58.1. growth. The bureau reported that wheat leaf rust has developed rapidly on susceptible winter nd spring wheat in the United Rmger Altoumyan. a clini- cal pharmacologist, said here. He was speaking at a confer- ence called to introduce a new anti-asthma drug. Dr. Altoumyan. formerly a surgeon at a 'hospital in Syria pets and is difficult to kill with 3 spray. In addition to the mite, other 1 difficult In characterize Ihe fi- f nal plan as a total reform. well on the shoulders of a body; which produce double taxalion: Asper is a Winnipeg law-j ready has Ihe which itself levies over bij-! of the same income. For in- j yer i I Altomyan. lion of taxes annually. stance, where a business incurs an expense which the Govern- ment considers unreasonable, causes listed as animal fur, dust, pollen, foods, hair, bread and starch. Anxiety can MANITOBA Seeding operations are nearly complete in Manitoba excepl for the Red River Valley, where es- States and spores appeared in I timates placed seeding in Manitoba and southeastern Sas- range between 25 and SO-p katchewan earlier this month. cent complete. Wheat, coa; SO-per- coarse play a role in asthma Leaf rust was first observed j grain, flax and buckwheat are but only when the person al-ial Winnipeg, Morden and Car- j still being planted. Most special biess. said Dr. I men in southern Manitoba Tues-1 crops look excellent, fnsect day and Wednesday. damage is reported to be light. LOOKING FOR L5HOE STYLE? And while the Onlario Gov- ernment laments thai Hie cur- rent proposals for reform are incomplete because they don't consider Ihe total tax system, ils own reform package, re- gardless of its o b v u o u s other merits, suffers the same defect. Almost all tne dialogue on lax reform has focused on Ihe pro- posed addilions lo and the pro- posals to change the treatment such as spending a large amount on an advertising pro- gram, the cost is not allowed I as a business expense to the! business bul is still taxed as in- i come in the hands of the recipi- ent advertising agency. The re- form plan will not resolve this difficulty. In an age where taxpayers at of taxpayers under the existing I all income levels are increas- syslem. Little comment is heard about many features of the present syslem which have long required reform, bul are ig- nored in the battle over the so- called larger issues. To be fair, it must be acknowl- edged Uial Ontario's submission did suggest that the deductibil- ity features of alimony pay- ments should be broadened, but by and large, most submissions, including thai of Ontario, in their enthusiasm over the at- tempt to close genuine and even suspected tax loopholes, turn a blind eye to Ihe fact that for every loophole in the present system through which the as- tute may avoid tax, there are many more inequities through which Governments abuse the taxpayer. As Ontario says, the alimony deductions is one example. But what of the rest? Is it fair that ingly called upon for contribu- tions to civic, community and charitable drives for funds, the ten per cent charitable deduc- tion limitation ought to have been brought closer to reality, as the United States reform plan provided. Also, contribu- tions to political parties ought to have been made deductible as the Cartel' Report suggested. The new system would per- petuate the unfairness of the present system which levies substantial financial penalties on taxpayers who, through mis- takes of their auditors, file er- roneous tax returns, ft fails to implement the Carter enlight- enment which insisted that be- fore changes in tax law are made there must be public hearings and that taxpayers should have the right to oblain and argue rulings of the tax division as .to the lax implica- For Summer Fun CORTINA PER MONTH 75-50 DOWN So Little Paid For So Much! coLLeae MeRCURY E D E D WORTH OF USED CARS REQUIRED Trade up now to the finest values in town the most complete selection of 1970 models and demonstrators UNLIMITED FINANCING HAS ALWAYS BEEN AVAILABLE AT BENY'S ON THE GMAC PLAN BEFORE YOU BUY CHECK AT BENrS OR YOU MAY PAY TOO MUCH D E D ONE STOP CAR SHOPPING IMMEDIATE DELIVERIES ON-THE-SPOT APPRAISALS HIGHEST TRADE-IN ALLOWANCES Putting you FIRST Keeps us FIRST CHEVROLET OLDSMOBILE MOTORS CQRPQRAnQN OK SUPERMARKET LOT PHONE 327-3148 SHOWROOM PHONE 327-3147 Adams SILVER LONDON DRY GIN Same great-tasting, triple distilled gin you remember of old. 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