_ BASIC TAXATION REFORM —

The following is a statement
of the Communist Party on
Taxation policy, adopted at its
recent Central Committee meet-
ings.

Communist Party de-

mands basic reforms of

our whole system of taxa-
as and tax policy to provide

a) Taxation based on ability
to pay, which means a heavier
tax on personal incomes and
corporate profits on a steeply
graduated basis.

b) No -taxation of goods and
services for purposes of pérson-
al consumption.

c) No taxation on personal in-
comes below a level considered
necessary to provide a life of
comfort and dignity.

: >,

The Communist Party de-
mands full implementation of
those proposals in the Carter
Report which call for full-rate
taxation of capital gains, higher
taxation of gifts and bequests,

elimination of all concessions to -

corporate finance, with specific
reference’ to current tax eva-

sions by mining, oil and life in-
surance companies. The Com-
munist Party insists, as stated
_in a brief submitted to the Car-

ter Commission, that a tax be
put.on both realized and unrea-
lized capital gains. Such gains
constitute increment of wealth,
whether they are realized now
‘or in the future.

@
Income, for purposes of a
more equitable and just taxa-
tion, must be deemed to include,

as the Carter report proposes, -

all economic gain over and abave
what is needed by an individual
or family as minimum expendi-
tures for food, clothing, shelter,
medical expenses and other
. necessities of life. This must in-
clude all income earned in Can-
ada or derived from investments
in Canada by citizens of the
United States and other foreign
countries.
; e
Government transfer pay-
ments, such as family allowan-
ces, old age pensions, unemploy-
ment insurance “benefits and

COMMUNISTS PROPOSE

workmen’s compensation pay-
ments, etc., merely redistribute
goods and services in favour of
those at the bottom of the in-
come scale, including those who
are unable to engage in remune-
rative employment. The .Com-
munict Party is against inclusion
of such payments in the com-
prehensive tax base.
e

A basic annual subsistance in- .

ccme level must be established
on a realistic basis. Incomes be-
low this level must be excluded
from the comprehensive tax
base. The Communist Party,
therefore, demands an increase
in exemptions at the bottom of
the income scale to conform to
above mentioned guaranteed an-
nual income, which must be free
from taxation. This, plus the tax
credits recommended in the

Carter report, should have the .

effect of eliminating more in-
come earners at the bottom of
the scale, including those in part-
time and ge employment.

A more taenly graduated rate
to be paid on business and cor-
porate incomes and on large per-
sonal incomes.

e

Cooperatives, Credit Unions
and Public Utilities must be kept
outside the comprehensive tax
base and remain exempt from

. corporate taxation.
e

' A democratically reshaped
federal tax system must aim to-
wards a more equitable distri-
bution of goods and services
throughout the country. Such a
system must therefore recognize
that Canada is made up of two
nations, both of which must have
equal rights in determination of
fiscal, monetary and taxation
policies. Within this context,
provision must be made for the
channelling of sufficient revenue
to all levels of government for
the purpose of adequately caring
for education, housing, health,
and similar indispensable ser-
vices.
e

The developing need for eco-
nomic growth and more social
services will require the trans-
fer of a bigger share of Cana-

ha income to the public sector
of the economy. This calls for a
complete reappraisal. of current
policies, which tend to move in
the opposite direction and to-
wards the strengthening of pri-
vate monopolies. The Carter re-
port painted out that: “The rate
of growth of our. (overall Cana-
dian) income can be increased
without cost by avoiding lapses
from full employment .. . Al-
though the tax system can be
designed to induce more work
and less consumption, it would
be foolish to do so until the cost-
less increases are obtained and
it is established that the result-
ing growth rate is still inade-
quate.”

The Communist Party. de-
mands planning for full employ-
ment and economic growth, and
calls for nationalization .and

public control over key sectors .

of means of production, trans-

‘portation, institutions of finance

and credits, in order to make this
possible in the interest of the
country and all the people.

°

e* Communist Party is
against the Carter recommenda-
tion for the integration-of cor-
porate and personal income
taxes, and the relegation of the
corporate field of taxation to the
federal government. .

What is needed is first of all
a recognition of the rights of
our two nations to self-determi-
nation. Only then will it be pos-
sible to work for some accept-
able agreement that will inte-
grate tax policy at all levels of
government. Such an agreement
is essential for a democratic tax
policy which aims to shift the
burden of taxation from home

Owners and consumers, and to-—

wards steeply increased taxa-
tion of corporate’ profits,
personal incomes and capital
gains. :
e

The increased demand for
socially necessary expenditures
and the need for increasing the
public sector of the economy,
means that capital exports must
be severly checked, or banned
entirely. There must be a stop
put to the leakage of dividends
and profits to foreign owners of

large -

Canadian productive enterprises,
resources and utilities.
+ The Communist Party de-
mands a 50 percent cut in de-
fense spending now. This, coup-
led with a steep increase in the
tax upon those who use our
natural resources, will help to
bring about a more realistic rela-
tionship between obtainable re-
venues and socially indispen-
sable expenditures. It will be a
most important corrective for
any inflationary tendency, par-
ticularly if it is accompanied by
steps to ,prevent the private
monopolies from manipulating
the price’ structure.
e é

Universal medicare must be
proceeded with on July Ist as
planned. At the present time in
Canada it is estimated that the
annual loss in production due to
illness amounts to nearly .one
and one half billion dollars. This
means we cannot afford to be
without a universal medicare
system.

e
The Communist Party pro-
poses that funds from the Cana-
da Pension Plan be invested: in
an emergency housing program,

to provide modest income earn-
ers with housing they can afford.

The sales tax on building ma-
terials used in housing construc-

tion must be removed. A curb
must be imposed on speculation
in land that force prices up

for all kinds of shelter. Great

land assemblies must be a vital
part of government planning to
provide adequate housing, with
emphasis placed on low cost
public housing for low income
people. Senior government as-
sumption of cost for education,
plus the restoration of th Muni-
cipal Development Fund to pro-
vide loans at lown interest rates
for municipal services, will go @
long way towards easing
housing: problem.
°
Government action to increase
pensions and other transfer pay-
ments to guarantee that people
with fixed incomes enjoy @
standard of living that make for
decency and self-respect.
Special consideration for pub-
lic investment in areas lagging in
economic development and in-
comes, as part of an overall eco-
nomic development plan for all
areas of Canada.

Winnipeg labor
on Medicare

The Winnipeg & District La-
bor Council has sharply con-
demned the Manitoba govern-
ment’s decision to defer the
province’s participation in the
federal medicare scheme for one
year. The delegates elected a
special committee to bring in
plans on how to convey the la-
bor body’s position on medicare
to the public and on how to
mobilize public pressure on the
government. Proposals from sev-
eral delegates for a protest
march on the Legislature when

the House convenes next month

were referred to the committee. -

Delegates also went on record
as opposing a proposed fee in-
crease to the doctors now oper-

ating the Manitoba Medical Ser-

vice. The MMS covers 622,000
people in the province out of a
population of slightly over a
million. According to Art Coul-
ter, Secretary of the Labor Coun-
cil, the fee increase would
amount to a 40 percent jump
which would make them double
what they were in 1962.

By JOHN MATE

The world is divided into
little people and big people. We
little people have very limited
access to information on big hap-
penings which affect all of our
lives, so, all we can do is ‘specu-
late’. Since we are little people,
our speculation will have no dire
consequences and: thus we can
afford the luxury of speculating
about ‘an infinite number of
things. Why don’t we, fora start,
speculate about what the hell is
going on in Korea?

Our limited information tells
us: that the nasty North Koreans,
seeing that their mean plot to
assassinate President Chung Hee
Park of South Korea has failed,
went out to catch themselves a
ship, preferably a defenceless
American ship with. electronic
spy equipment on board, sailing
in international waters.

By sheer luck they chanced
upon the unsuspecting Pueblo

and me and

which just happened to be float-
ing around minding her own

business. The mean North Kore- |

ans pulled up to the Pueblo with
their formidable gunboat and

‘asked her to identify herself. The

Pueblo meekly replied, “I am a
defenceless American ship with
electronic spy. equipment aboard,
sailing in international waters.”
The unscrupulous North Koreans
continued their belligerence. by
asking if the Pueblo would please
stick around for another hour
and a half, until more North
Korean gunboats could arrive.
The Pueblo complied with the
wishes of the North Koreans,
when all of a sudden, unexpect-
edly, after an hour and a half,
more North. Korean gunboats
made the scene.

Quickly comprehending the
Situation, the captain of the
Pueblo told his men that the
dirty, double-crossing North Ko-
reans have brought in more gun-
boats, but not wanting. to shed

blood on either side, he is sur-
rendering the ship.

Just as the Pueblo was hoist-
ing up the white flag, and the
ship’s thirty piece band was get-
ting ready to play the North
Korean anthem, the North Kore-
ans opened fire, wounding
the piccolo player, the tuba play-
er, and the drummer. Then they
arrogantly declared that if the
Americans pull one more trick
like that then they will have
nothing to do with the Pueblo
anymore. At this point the cap-
tain got scared and ordered all
musical instruments to be
thrown overboard. Even the
North Koreans could not main-
tain their usual frigidness at the
sight of such obvious goodwill.
They boarded the Pueblo, and
invited the captain and entire
crew to come ashore,

The captain replied that he
and his crew would be delighted
to accept the kind invitation,
since. they have, been floating.

around there for the past fifteen
years without once setting foot
on land, but that unfortunately
he wouldn’t know how to explain
it to the state department and
the CIA in case they ever found
out.

What? You work for the state ©

department and the CIA?” asked
the North Koreans suspiciously.

“Yes. In fact we have been
spying on you for the past fif-
teen years,” answered the cap-
tain.

“No?” shrieked the North Ko-
reans in utter disbelief.

“Yes,” affirmed the captain,
“and we think that if you have
any self respect at all then you
would capture us.”

Suddenly the North Koreans
drew their guns, and without
provocation, in clear view, in an
open act of piracy, venomously
hi-jacked the Pueblo from the
open sea.

Being very little people, who

have very. Umited , access to in-.

the Pueblo

formation, we can only speculate
as to why the Pueblo was seized.

Our speculation has led us to
think that, following a new stra-
tegy,, the North Koreans are
deliberately trying to provoke
the Americans. They are deliber-
ately trying to trick the Ameri-
cans into dropping atom bombs
all over North Korea and in the
process to destroy their own
ship, the Pueblo, as well. |

We may be wrong, but if we
are, then there must be some
other reason why the Pueblo
was captured.

Maybe.the Americans wanted
it captured so as to have a good
excuse to get even more involv-
ed militarily in that part of the

world. Maybe another war with -

North Korea will be just one
more step towards the final,
inevitable, confrontation with
China. :

Who knows? All we can do is
speculate. We are little people.

1968—PACIFIC TRIBUNE—Page 6

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