Taxation is the means by which gov-
ernments collect their revenues from
the population. Present tax policies are
unbearable for the working people, but
favor big capital, speculators and those
with large incomes.

For example, if you are rich and
can invest in gas and oil stocks, or put
money into a trust fund, or invest in
land, or some other lucrative ventures,
there is literally no end to the tricks
and loopholes by which the rich evade
paying taxes.

But if you work for a living you can-
not make use of loopholes. A big tax
deduction is taken away from you be-
fore you even get your pay.

Capitalist monopolies like the Inter-
national Nickel Company, or corpora-
tions like General Motors, can get all
sorts of allowances including allow-
ances of depreciation for obsolescence
of machinery.

But the working people do not re-
ceive any allowances for the wear and
tear of the human body in the course
of producing the real wealth of the
country.

ON TAX REFORM

In March 1970, the Communist Party
of Canada made a written submission
to the Standing Committee of Finance,
Trade and Economic Affairs in connec-
tion with the White Paper on Tax Re-
form, then before the House of Com-
mons. The Brief stated that taxation
policy is of prime concern to the Cana-
dian people and more particularly to
those working by hand and brain.
Taxation policies, it pointed out, could
be a factor in stimulating or retarding
economic growth and resulting in poli-
cies of full employment, or the oppo-
site, an important instrument — to
determine how the Canadian income is
to be distributed between those who
own the wealth, and those who produce
the wealth in our society.

The facts are that the rich do not
pay their share ‘of taxes. Many mil-
lionaires pay no taxes at all. The rich
manipulate the state and the legal
structure. They devise policies in such
a way as to escape taxation on the
corporations under their control. They
salt away funds into foundations and
trusts, and set up as charitable founda-
tions for the explicit purpose of avoid-
ing taxes.

The cool and calculated evasion of
- taxes and social responsibilities by the
rich imposes on the working people
heavy burdens of taxes, from the initial
raids on their pay envelopes to the
various forms of taxation on homes,
consumer goods and services.

e The failure to tax fully the large
personal incomes and the accumulation
of wealth and large corporate profits,
and the drive to increase taxation on
consumer goods and personal services,
robs working people a minimum stand-
ard of subsistence.

e Instead of a rate of taxation rising
progressively with rising income, the
main burden of taxation has been
placed on lower incomes. For example,
the percentage increase in taxes from
1965 to 1969 was four times greater for
incomes of $5,000 than those with
$40,000 a year. Since then the trend
has been to eliminate from full taxation
those on high incomes and corporate
profits, while placing a heavier bur-
den of taxes on those with earnings
between $8,000 and $24,000 per year.
PACIFIC TRIBUNE FRIDAY, OCTOBER 13, 1972

While eliminating some of the taxes
on the lowest incomes, at or below the
poverty level other workers have their
taxes raised. This has the effect of

‘levelling the incomes of working peo-

ple. The result is reduce buying power,
increase unemployment and extend the
area of poverty. ;

e@ On incomes above the level of
$24,000 the rate of taxation has actual-
ly been reduced, so that a person
making $100,000 in taxable income
now enjoys a tax cut of $5,470.

e The favored position of this group
of taxpayers find its reflection in the
granting of special privileges for oil,
mining and other resources based in-
dustries, privileges that cost the Cana-
dian people millions in taxes. This
means less money for the development
of secondary industries on top of the
effect of ruining the domestic market
for goods and services, because of re-
duced purchasing power, which ought
to be the basis of existence of a de-
veloping and healthy manufacturing
economy.

e These policies pursued by the fed-
eral and provincial governments are
responsible for the financial dilemma
of the local, municipal governments.
At present the budgetary revenue for
Metropolitan Toronto, for example, is
made up almost 90% from property
taxation. The idea that such a narrow
tax base can support mcdern social and

community services required by the
people engaged in modern industry and
commerce in this or any local com-
munity is, to say the least, prepos-
terous. It affects the people who own
their home or who rent their home.

e Taxing peoples’ homes to obtain
general civic revenues is wrong in prin-
ciple. For most people, private homes
are not a source of revenue, but a place
to raise a family and some security
against progressive reductions in earn-
ing capacity and old age.

e To make matters worse, small
property owners are assessed at full
value, while wealthy home owners and
apartment owners and developers are
often assessed at considerably lower
rates based on special privileges and
generous concessions. Small business
property is also as a rule assessed at
close to actual market value. But
wealthy developers, owners of high-
rise and downtown sky-scrapers are
mostly assessed far below the actual
market value on their properties.

e The main issue is the inequitous
policy which subsidizes private corpo-
rations at the expense of the working
péople. The Communist Party demands
that this policy be reversed.

SOURCE OF CAPITAL
It is also a fact that tax policy alone
will not resolve the problem of pov-

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PAGE 6

FRUSTRATION

-ercise effective veto power Ov

erty and unemployment. Other ne
ures have to be taken as well, suc
raising the minimum wage, increas
family allowances and other ae
security measures on a_ univé ing
basis, without a means test, hous
and so on. But, tax policy creates on
sources. of income which can bé the
plied by the government to get a nal
problem of poverty as well as regi
disparity. ee
Restor disparity in wealth and aft
come is caused by the private Pf a
system. As long as private cornea
tions and monopolies are left to mt
all major decisions concerning ¢P

5 : ex
investments they will continue ue the

life and death of local, regional a
even national communities. It is thé ‘all
private investors who have the al
say as to the ebb and flow of CAR el
investments, the location of inca
and the extent of economic devé
ment. ith
In a country such as Canada, W!
its branch plant economy and fot
ordinately large dependence upon al
eign corporate owners, particu: ‘sl
United States monopolies inter nb
with domestic industrial and bam")
capital, it is abundantly clear that ©
alternative is nationalization 4 the
expansion’ of the public sector at
expense of private monopoly.
In our circumstances th
teria for regional economic dé
ment boils down to who is goin’ 4
pay for social and public services,
how this affects the majority of. vf
payers. It is the drive for max!
monopoly profits which explains 4
reason why capitalist politicians
governments seek to bribe inves og
by economic concessions at the exp oly
of the working class and non-monoP””
small business ;

* %

ROLE OF INFLATION — ot
The corporate industrial and cornet
cial structure, with the full comp! vert
and material assistance of 8°) (4
ments, has made use of inflation eee,
mulate economic expansion whe!
such has taken place. Inflation hag
couraged investment in the exp pur
of prices rising above the costs- ;
ther, it has safeguarded monopoly °
fits by lowering the real valu
wages. ‘
Increased productivity has beer io
tained by capital mergers and 14
alization of productive facilities ag
hands of monopoly. The raPl0, jy
growing technological changes 4° jy
tomation is assisted in the maim iad |
public funds obtained, by heaviel 9.”
heavier taxation of the working
ple. The result is layoffs, unemP
ment and extended poverty amone og
working people, but increased © 4.
rate profits at the expense of t |
ing class. nd
Then we have the growing XPS 4s |
tures on socially useless items su of |
advertising, armaments and thing” es |
that sort. The barbarous United ad”
war of aggression in Vietnam a on
ded to the pressure of expenditure? —
military supplies.

he wor

|

* *

PARASITIC MONOPOLY |

All of this is responsible for ye
expenditures for the satisfactlO
social and human needs, including

tinh