May 24, 1930 (16th Parliament, 4th Session)


Alexander Duncan McRae

Conservative (1867-1942)

Mr. McRAE:

I appreciate what the
minister says, and that brings home the point that I want to get before the house. It is this, that by this higher share tax in Canada we are driving our business to the American exchanges because a man trading in large blocks of Canadian stacks will make a very material saving in the tax alone by having the transaction executed in New York. I do not believe it is in the interests of Canada, and certainly it is not in the interests of those

who are engaged in that business in this country, to have to operate at such a disadvantage. You have the results. If you deal in New York, it takes money out of the country, takes the profit on the transaction out of the country, and the government as well loses the revenue. It seems to me that some method should be found of dealing with the situation. Whether a man buys shares through Canadian exchanges or through the New York exchange, in either case he uses exactly the same credit and should pay the same tax. I hope the hon. minister will find some way of dealing with the matter, otherwise I have reason to believe that a great deal of the business, particularly the large transactions, those which can get credit in New York, will drift to that exchange.

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