July 20, 1942

NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

Possibly so. I withdraw my question at this time.

Topic:   WAYS AND MEANS
Subtopic:   INCOME WAR TAX ACT
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NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

How -much does the minister expect to raise this year by way of war savings certificates? Could he give the committee a rough estimate?

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Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I have not discussed the matter lately with the national war finance committee. Naturally plans change and estimates vaiy from day to day, Mr. Spinney is now in western Canada, and then of course the budget gave a bit of a jolt to the national war savings committee organization.

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Subtopic:   INCOME WAR TAX ACT
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

Naturally.

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Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

And that has to be overcome.

Income War Tax Act

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Subtopic:   INCOME WAR TAX ACT
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NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

The minister has to raise SI ,800,000,000 on top of taxation to pay for war and ordinary costs. About how much does he think he can raise through the sale of war savings certificates during the year, in view of the present budget? The minister must have some estimate in mind as to how he is going to raise the SI,800,000,000 through various methods. The sale of war savings certificates is one method, although perhaps not the main one. Certainly it would be an important subsidiary method of raising revenue.

Topic:   WAYS AND MEANS
Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I cannot give any estimate

of that kind.

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Subtopic:   INCOME WAR TAX ACT
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

What is the

objective?

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Subtopic:   INCOME WAR TAX ACT
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NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

The roof is 31,800,000,000.

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Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I am not in a position to state the objective. I have not taken that amount, broken it down and said, "We will get so much this way and so much that way."

Topic:   WAYS AND MEANS
Subtopic:   INCOME WAR TAX ACT
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NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

It might be well if you had.

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Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

It is a case of spending whatever the country is capable of spending on war, doing everything the country is capable of doing, and then of adopting some financial method or another to see that that cost is met. It is not a case of deciding how much we can afford to spend, or how many dollars we can raise, and then adapting our war effort to that number of dollars.

Topic:   WAYS AND MEANS
Subtopic:   INCOME WAR TAX ACT
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

Would that not be a fairly wise thing to do?

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Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

No, I do not think so.

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Subtopic:   INCOME WAR TAX ACT
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

That is what you have to do in private life.

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Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Yes, that is what is done in business, and what perhaps has been done by governments in former years. But from the very beginning our decision has been to do everything the country was capable of doing, no matter what the cost, and then finance it some way or another. We have been able to to do it so far.

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Subtopic:   INCOME WAR TAX ACT
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NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

I believe everyone agrees with the minister that so far as the war is concerned what is physically possible is financially possible. But when one gives consideration to that very general statement, a statement to which one happily subscribes, he becomes puzzled to know how, under our present financial system, we are going to carry it out. Has the minister consulted with any of his technical advisers as to just how we can carry out that principle of what is physically possible being financially possible under

our present system? Looking at this budget and the impositions that are being placed upon the people, it would seem to me that if we are going to maintain the integrity of our financial system and preserve it for the postwar period we are coming quite close to the end of our tether. There may be some other means of raising money or credit, and I should like to have enlightenment on that if the minister is prepared to give it.

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Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

It is an ambitious programme that the hon. gentleman has put before me, to outline the way of making the financial effort approximate the physical effort. This is a very general question, a question that has been discussed time and time again in the house. The hon. gentleman knows what we are doing; he knows how wTe are meeting the cost of the war. We have been able to do it to date and expect to continue to do it.

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Subtopic:   INCOME WAR TAX ACT
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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

By the same method?

Topic:   WAYS AND MEANS
Subtopic:   INCOME WAR TAX ACT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Yes.

Topic:   WAYS AND MEANS
Subtopic:   INCOME WAR TAX ACT
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July 20, 1942