September 12, 1939 (18th Parliament, 5th Session)

CON

Henry Herbert Stevens

Conservative (1867-1942)

Mr. STEVENS:

Frankly, I do not think the increase is exorbitant. It should be at least that.
There is one thing I should like to say to the minister, and it is this. I am very glad that he has not increased the sales tax, and in case between now and the coming session he should be tempted to do so I will tell him why I make that statement. The sales tax works inequitably on different lines of business. Let me illustrate that briefly. Here is one class of industry that has a turnover we will say every two months, equal to its capital. Therefore at the end of the year it would have a forty-eight per cent tax as compared with its capital. Another class of industry has a turnover comparable with the amount of capital only once a year. Obviously one class of business carries a greater weight of taxation than the other, though the rate is the same.
I think the minister partly recognized that

The Budget

Mr. Coldwell
principle when he imposed the excess profits tax; I believe that principle was involved in the choice given there.

Topic:   EXCESS PROFITS TAXATION ACT
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