229
9,700,000.
But how is that composed?
Salaries Tax is estimated
to bring in $1,000,000 as was anticipated, Property Tax $2,300,000
against $2,000,000 while Corporation and Business Profits should
bring in $6,400,000 against $3,000,000, but this figure includes
not less than $5,500,000 in respect of Corporation Profits and
only $900,000 in respect of Business Profits, which is disappoint-
ingly small when it is remembered that businesses include all non-
incorporated firms, and also professional men who do not pay
Salaries Tax. We seem to be faced with three alternatives, first
to perpetuate and increase the oxisting inequity by increasing
without other modification the existing rates, second to amend
radically, the present Ordinance with a view to spreading its
incidence more fairly over the community, third without increasing
drastically the present standard rates to revert to proper Income
Tax which was the original proposal of this Government in 1939,
and which Government has always considered to be the fairest form
of taxation. In this connection I venture to quote my own words
in introducing the War Revenue Bill in this Council in March of
last year:
"The Government has accepted the recommendations of the
War Revenue Committee and the bill which I am asking to have
It is, read today for the first time is a Government measure.
however, just and proper that I should state at this juncture
that in the Government's view the taxation scheme framed in
the bill will not be as equitable or as efficient a means of raising revenue as would be an Income Tax measure on the lines which you, Sir, and your advisors had in contemplation a few
you,
months ago.
"It may seem anomalous that an Administration, with a competent majority on the Legislature, should deliberately promote one measure believing another to be its superior, but
This bill's principal the explanation is not far to seek.