July 17, 1942


), the increase i is 11-2 per cent; atthe increase is 11-1 per cent; atthe increase is 17-7 per cent; atthe increase is 22-2 per cent'; atthe increase is 30-1 per cent; at $100,000 the increase is 44-8 per cent; and with an income of $500,000, the increase is 68-6 per cent. Now take the married man. There we begin with the married man who has an income of $1,250 because there is no tax unless the married person earns $1,200.


NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

Normal tax.

Topic:   WAYS AND MEANS
Subtopic:   AFTER PRESENT TAX IS PAID
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Either normal or graduated. Take the married man with an income of $1,250. The percentage of the increase in tax to what he has left after his present taxation is a minus quantity, minus 2-1 per cent; with an income of $1,500, there is an increase of 2-4 per cent; and so on down the table.

The next objection was that we have treated the married taxpayer unfairly as compared with the single taxpayer, and that is probably the most telling point, if it- were valid, that has been made in the press and in the house. Let me, as I did before, confine myself to tax increases alone, leaving out compulsory savings. I will put this table on Hansard:

Income War Tax Act

Topic:   WAYS AND MEANS
Subtopic:   AFTER PRESENT TAX IS PAID
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INCREASE IN TAX ALONE


(amounts rounded to nearest dollar) Income Single Married No children 2 children 5 children 8 childrenSI,250 5 -25 6 1,500 30 34 -10 - 2,000 101 56 47 2,500 151 126 102 30 3,000 202 184 119 122 174,000 319 289 218 237 2105,000 398 378 327 269 3727,500 570 555 517 430 43810,000 712 682 636 542 420 Looking at this table, it will be seen that the single taxpayer with an income of $1,250 has had his tax increased by $5; the married man, without children, and with that same income, has had his tax decreased by $25; the married man with two children has had his tax decreased by $6. I admit that that is just a little out of line from what the proper principle would be, but slight departures are necessary in the application of the formula; that cannot be avoided. There is just one other difference in this whole table. The single taxpayer having an income of $1,500 has had his tax increased by $30, and the married taxpayer by $34: that is the second failure of the formula to get ideal results and, as hon. gentlemen will note, it is the last one. The married man with $1,500 and two children has had' his tax decreased by $10. At $1,750 the increase for the single man is $58, for the married man without children it is $36, and for the married man with two children it is $5. At $2,000 the increase for the single man is $101, for the married man without children it is $56, and for the married man with two children it is $47. At $2,500 the increase for the single man is $151, for the married man without children it is $126, and for the married' man with two children it is $102. At $3,000, the increase for the single man is $202, for the married man without children $184, and1 for the married man with two children, $119.


NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

Just there: does not the single man with an income of $3,000 pay $1,064?

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Yes, I believe so.

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

How much did he pay on his 1941 income?

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

That is, including the compulsory savings. We do not know how much of that he will pay the government. He may not pay anything.

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

What is

the tax?

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

It is $824.

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

The minister is speaking

of the increase as so-and-so; is that over last year?

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Over last year. The point

I am trying to make is this. The argument has been that we have pooled these two categories and in some way have done an injustice to the married man; that we have narrowed the spread between the single man and the married man. That is not so. With the exception of the two instances which I gave, in every case we have widened the spread. We have increased the tax more on the single man than we have on the married man, and still more than on the married man with two children.

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

Would not that depend

upon whether you were pretty bad last year or not?

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Well, if it is an attack on

last year's rates, that is another thing, but I thought it was an attack on this year's rates. Assuming that last year's rates gave a proper relationship between the single and the married man, we have done even better for the married man, and still better for the married man with children this year, on the lower categories. I will go along. At $4,000 the increase for the single man is $319; for the married man, $289; and for the married man with two children, $218. At $5,000 it is $396 for the single man, $378 for the married man, and $327 for the married man with two chil-

Income War Tax Act

dren. At $7,500, it is $570 for the single man, $555 for the married man, and $517 for the married man with two children. At $10,000 it is $712 for the single man, $6S2 for the married man, and $636 for the married man with two children.

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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SC

John Horne Blackmore

Social Credit

Mr. BLACKMORE:

Before the minister

goes on, do these figures allow for the exemptions? Is it the net result which the minister has been giving us?

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

That is right. The hon.

member means, exemptions for the children and everything?

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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SC

John Horne Blackmore

Social Credit

Mr. BLACKMORE:

Yes.

Mr. ILSLEY': Yes. I have taken the married man; he is taxed on a different basis from the single man, and then the married man with two children has certain deductions or exemptions for his children.

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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SC
LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

That is all included. In regard to this table which I said I would put on Hansard I merely gave the figures for single men, married men, and married men with two children. The table carries it out to the married man with five children and the married man with eight children; this will give further information and bear out the general proposition which I have stated.

Let me now give the difference in figures. This is the difference in the tax payable by the single person and the tax payable by the married person, the married person with two children, with five children and with eight children. The difference last year between the tax payable by a single man and a married man w'ith children, at $1,500 was $142; the difference 'this year is $150.

Topic:   WAYS AND MEANS
Subtopic:   INCREASE IN TAX ALONE
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July 17, 1942