May 8, 1929

CON

Robert James Manion

Conservative (1867-1942)

Mr. MANION:

My hon. friend is not

going to ask the house to pass the resolution in regard to the Special War Revenue Act to-night?

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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LIB

James Alexander Robb (Minister of Finance and Receiver General)

Liberal

Mr. ROBB:

No.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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CON

Robert James Manion

Conservative (1867-1942)

Mr. MANION:

I wish to point out what

I think is an inequality in this tax. I shall do so by quoting a few figures I have compiled myself. For example, 1,000 shares of Noranda at to-day's price of $54 amounts to $54,000 and the tax upon it is $30. On the other hand, 1,000 shares of Kirkland Lake at, say yesterday's price of $1.02, comes to $1,020 and the tax is $10. This bears out the criticism offered by the hon. member for West York. It does not seem a fair method of taxation whereby you tax a small dealer to a much greater extent in proportion to his deal than you tax the larger dealer.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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LIB

James Alexander Robb (Minister of Finance and Receiver General)

Liberal

Mr. ROBB:

Not the small dealer, the small priced stock.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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CON

Robert James Manion

Conservative (1867-1942)

Mr. MANION:

The small priced stock

purchase. He is a small dealer in that he buys or sells small priced stock. On the other hand, I do congratulate the minister on this, that he has very much improved matters so far as the penny stocks are concerned, but even yet the penny stocks are being -charged rather heavily. For example, take 1,000 shares of Columbus Kirkland, currently selling at ljr cents a share. That deal would amount to $15, and the tax would be $1, whereas in the Noranda deal which I instanced, 1,000 shares selling at $54 a share, the tax would be $30. In addition, there is a commission on the Columbus Kirkland deal of $1.50 and an Ontario tax of 30 cents, making total charges of $2.80. It is true that only $1 of that is chargeable to the Minister of Finance, but it must be remembered that a lot of these penny stocks do become the parents, so to apeak, of first-class mining stocks. My hon. friend who took his seat a few moments ago gave some examples. I will mention only one or two. Teck-Hughes, which is one of our outstanding gold mines, was selling a few years ago at 10 and 15 cents a share; it is now selling around $9 a share. McIntyre a few years ago was selling at 15 and 20 cents a share; to-day it is selling around $16 and $20 a share. Sheritt-Gordon within the last few j^ears was selling at 60 cents a share; it is now selling around $8.50. So these small penny 78594-150J

stocks that are largely traded in are sometimes the cause of the development of a large mining interest.

I want to put on record before six o'clock one other -point in regard1 to industrial stocks, which I think is worthy of the consideration of the Minister of Finance between -now and Monday, when he may possibly have to make some changes. Take an industrial stock, although really it is a mining concern, like Smelters. One hundred shares of Smelters at yesterday's price of $420 would amount to a $42,000 deal. The tax on -that is $4, according to the minister's figures. One hundred shares of Cosgrave Brewery at $3.50 a share would be a $350 deal, and the tax on that is $2. There is a tax of $2 on a $350 deal, and a tax of $4 on a $42,000 deal, in the same number of shares.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
Permalink
LIB

James Alexander Robb (Minister of Finance and Receiver General)

Liberal

Mr. ROBB:

How would it be to put them all on the same basis as with the sales tax?

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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CON

Robert James Manion

Conservative (1867-1942)

Mr. MANION:

I do mot think the sales

tax would be fair at all. The minister has spoken of that in the past. I understand, but I do not think it would be fair because these shares change hands so frequently. We think that the sales tax should be wiped out altogether, but, at any rate, as it is presently applied it is fair to this extent, that when you buy a suit of clothes you make that purchase and you keep the suit, paying the sales tax only once, but these stocks change hands again and again and it would not be a fair method to apply the sales tax to them. One way in which it could be done-I am speaking for myself

would be a percentage tax on the value of the deal, although I have not worked out any percentages. I may say a few more words in regard1 to this matter when it comes up again, but I thought in the meantime the minister might give it his consideration.

Progress reported.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
Permalink

SPEAKER'S RULING ON POINT OF ORDER

CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

Perhaps, Mr. Speaker,

before you finally arrive at a conclusion with respect to the point of order which was raised this afternoon, there -may be an opportunity for some further discussion?

Topic:   WAYS AND MEANS
Subtopic:   SPEAKER'S RULING ON POINT OF ORDER
Permalink
LIB

Hewitt Bostock (Speaker of the Senate)

Liberal

Mr. SPEAKER:

Yes. I will let the hon.

gentleman know further with respect to the matter.

Topic:   WAYS AND MEANS
Subtopic:   SPEAKER'S RULING ON POINT OF ORDER
Permalink

At six o'clock the house adjourned until Friday, May 10, without question put, pursuant to standing order. United States Tariff



Friday, May 10, 1929


May 8, 1929