July 16, 1956 (22nd Parliament, 3rd Session)


George Alexander Drew (Leader of the Official Opposition)

Progressive Conservative

Mr. Drew:

I am very glad to hear that announcement for the first time. If it is not denied, then there is support for the argument I am making that the present proposals are unsatisfactory. If the statement made by the Minister of Citizenship and Immigration is correct, then I submit it is perfectly clear that when we are told by certain provincial premiers that double taxation will be the result of this situation most certainly there should be a pause and there should be an opportunity to get together and to really analyse what will be done.
Federal-Provincial Financial Arrangements
I know the arguments that can be made, Mr. Chairman, about corporation taxes. The simple fact remains that what is called the abatement in the corporation tax field is 9 per cent and not even the 10 per cent that was stated in principle as being the very starting point, the minimum that was to come within a year after the war. To the extent that that was only a minimum at a time when the needs were not comparable in any way with the needs of today, the federal government is in default in principle even in relation to what was promised that long ago. Certainly this statement would have been meaningless if it only suggested that the provinces could go ahead and levy taxes and create double taxation because they could have done that at any time. There was never any uncertainty about that. The very fact that they can supports my point that there was a clear understanding that the percentage then indicated was a percentage which was to avoid double taxation.

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