By BRUCE MAGNUSON

The Ontario Tax Committee
rejects the concept of basic tax
reform and attempts to patch
up the status quo. It repudiates
the idea of a tax on capital
gains. In this respect it differs
radically from both the federal
Carter Commission and_ the
Quebec Belanger Commission.

The home owner grant, based
on the first $2,000 of assessment,
promised yesterday by Premier
Roberts, along with the assump-
tion by the province of the full
cost of the administration of
justice, if implemented, will
provide some small benefit for
home owners and municipali-

WHAT A 6 PERCENT SALES
TAX ON SERVICES
WOULD MEAN
e a $20 car tuneup would

cost $21.20;

e a $5 trip to the beauty
parlor would cost $5.30;

@ a $15 bill at a hotel would
cost $15.90;

e a $2 cleaning bill would
cost $2.12;

¢ a $1 parking bill would
come to $1.06.

SO WHO LIKES THE

SMITH REPORT
@ “The Telegram applauds
the Robarts government
for the Smith Report in
its present form and in
particular its major rec-
ommendations.”
® Okah Jones, president of

Consumers’ Gas, thought |

the report was impressive

because of its realism
and practicality.

¢ Bud Miles of Burns Bros.
and Dunton said the re-
port is much more practi-
cal than the Carter Royal

Commission on Taxation.

AND SMITH HIMSELF

SAID:

“There will probably nev-
er come a time when people
will actually enjoy paying
taxes, and we can suggest
no policiés that would
achieve such a remarkable
result, But with or without a
smile and a nod, taxes must
be paid.”

» eT

POUUEQEUELUUUEEOUEEECEEQURECUOEADQUUUEEUUEOEUEEQOGEOCEEOTEEOREEOCEEUCRECUDEOCEEO CEE ET EEE EOE
Five years in the making with a cost of $1 million, the Smith

Report has appeared.

Lancelot J. Smith, a chartered accountant, and his four fellow
members of the Ontario Committee on Taxation have produced a
three-volume report (cost $15) with 350 recommendations.

Those. who expected a second Carter Report, or even some
recognition of the existence of the Carter proposals, are in for a
disappointment, for the Smith Report is distinguished by its

conservatism.

For those who were worried that Mr. Smith and his cohorts
might go along with capital gains and other such attacks on big
business profits, their fears are allayed.

The Smith report will not rock any monopolist boat; nor will
it bring real relief to the working people of Ontario.

While the Robarts government will undoubtedly latch on to a
couple of the proposals and use them for all they are worth in the
election campaign but in sum total the Smith Report is far more
dangerous than beneficial. The Tory candidates should not be al-
lowed to get away with promises of implementing only that which
they think will get them votes when they know that in fact the tax
increases are going to come just as surely as the proposals for

tax relief.

ties. But the benefit of this will
be more than cancelled by mas-
sive property re-assessment and
the abolition of the lower mill
rate for residential as compared
with commercial property. In
fact, home owners assessments
could be tripled in the long run.
The uniform mill rate for resi-
dential and commercial proper-
ties recommended on this in-
equitable basis could drastically
increase property taxes in the
final analysis.

‘The proposal for a five per-
cent per year increase in direct
provincial grants to school
boards is much too little and
comes far too late. Twenty-four
years ago Col. George Drew
promised to assume half of edu-
cation costs, but presently the
government pays only 43 per-
cent on the provincial average.
Even if the Smith report pro-
posals were to be implemented,
it would be 1969 before that 24
year old Tory promise would be
fulfilled, and only providing
school costs remain static, which
is not the case. In actual fact
municipalities will be faced with
increasing school costs in spite
of the Smith Committee’s pro-
posals.

Far from sweeping away what

it calls the “chaos” and “night-

- mare” of the present provincial-
municipal financial structure,

the Smith report proposes to re-

tain all present inequalities and

'roioMkit' OW. 1

seeks to holster up, brace and
prolong the life of this crumb-
ling structure by super-imposing
from the top yet another expen-
sive layer of so-called regional
government. As in Metropolitan
Toronto, this undemocratic way
of getting at the problem will
serve to increase cost of civic
administration, and will destroy
civic democracy in the process.
The only way forward, as an
alternative to this authoritarian
procedure, is democratic amal-
gamation in urbanized areas
along with basic tax reform that
gives proper recognition to the
realities of economic activity
and sources of income. The
Smith Committee report will not
do away with, but on the con-
trary intensify, on a higher and
broader basis, the current cut-
throat competition between mu-
nicipalities and regions for in-
dustrial assessment, based on
tax concessions. This — policy
plays into the hands of big busi-
ness.

The bulk of the Smith Com-
mittee recommendations are re-

WHAT CAN YOU GAIN?

e If you are a homeowner,
the tax on the first $2,000
of assessed value of your
home would be paid by
the provincial govern-
ment. {If you rent, the
hope is that the owner
would pass this on in the
form of lower rents!);

@ increased grants to muni-
cipalities for education
which could mean a low-
er municipal tax bill.

WHAT CAN YOU LOSE?
® increased municipal tax
bill from reassessment of
all property and the end-
ing of differential between
homeowners and _ busi-
nesses (In Toronto in 1967
the residential rate is
88.60 mills and the busi-
ness 99.42);

® higher provincial income
tax;

e higher sales tax and tax
on services to 6 percent
initially ;

e higher automobile license
‘fee with flat $25 rate;

® higher gasoline tax, two
cents at the beginning; |

e loss of democracy through |
establishment of regional
governments. a8

Png
4 Wp

gressive and the philosophy be-
hind them is reactionary. It will
serve to increase the tax burden
for everyone except the big
monopolies. Companies, like In-
ternational. Nickle, which would

. pay higher taxes under the Car-

ter Commission recommenda-
tions, will get away with pay-
ing less taxes under the Smith
Committee’s recommendations.
The extended base of real es-
tate taxation and retail sales
taxes shifts the main burden of
taxation to the backs of the
workers, farmers, small business
people and professionals, while
opening up new ways for specu-
lators and the rich to reap even
greater profits at the expense of
the poor. This is to be seen in
the fact that all services are to
be axed. Gasoline taxes will be
increased. Hospitals, schools and
universities, along with places

be taxed. No prope |
to the ordinary iy. oe
main tax free. Ont j
exchange and capita
main the sacred CON)

The people of
reject this report |
administration W

tion gives the Po iy il
tunity to bring ~” jiectll a
20th century PY oly. Ma

of the fact
has deprived ie
sands of young ing 0%
franchise by TO ce Mam
voting rights t ” alttg
18 and 21, 2 2°" inst
must be found a vote
who are still abe jroo!

election —

RADE union leaders in the
United States who are op-
posed to the war on Viet-

nam are now organizing a na-
tional labor meeting to examine
the administration’s foreign
policy.

This national Labor Leader-
ship Assembly for Peace will be
held at the University of Chi-
cago Nov. 11 and 12.

Professor John Kenneth Gal-
braith of Harvard, a critic of
present Vietnam policy, has ac-
cepted an invitation to speak on
the topic, “Alternatives to Ame-
rican Foreign Policy.” The Rev.
Dr. Martin Luther King, Jr.,
Nobel Peace Prize winner, has
tentatively agreed to address the
meeting, which the organizers
expect about 450 full-time union
leaders or staff members to at-
tend.

The leading organizers of the
assembly, whose names appear
on the letters being mailed, are
Frank © Rosenblum,
treasurer of the Amalgamated
Clothing Workers of America;
Patrick G. Gorman, secretary-
treasurer of the Amalgamated
Meat Cutters & Butcher Work-
men of North America, and Emil
Mazey, secretary-treasurer of
the United Automobile Workers
of America.

They are working with the
Trade Union Division of the
Trade Union Division of the Na-
tional Committee for a Sane Nu-
clear Policy (SANE) and they
have established chapters in

secretary-

n Frat
Louis, Milwa uee,
several ot

In their letter

. hs
of all religious i? c
openly express

uneasiness avr

ethical role Th