*

of living has increased.

from income tax would imme

THE NATION

By TIM BUCK

~ Raising of income tax exemptions

will increase your purchasing power

HE contrast between the government’s solicitude for

corporation profits and its calculated undermining of

the purchasing power of wage and salary earners is a

striking illustration of Prime Minizter Louis St. Laurent’s

service to privilege against the working people. Nowhere
is that more evident than in the sphere of taxation.

The government has increased the burden of taxes
upon the wage and salary earners to an extraordinary
extent during the past year. The tremendous increase in
the cost of living has been in a large part a result of
the govemment’s taxation policy of studied discrimina-
lon against the small income groups, but most evident
as well as most iniquitous is the discrimination against
wage and salary earners in the matter of personal in-
come tax.~' .

Only a minority of workers secured wage or salary
Increases during the past year. Even those who were
successful. in securing increases did not win enough to
keep pace with the soaring cost of living—but they had
to pay more income tax just the same.

e a

A married man (with no dependent children) who
earned $35 a week would have paid $38 in income
tax, for example. A worker who was successful in in-
creasing his earnitigs to equal $40 a week didn’t keep
pace with the soaring prices but his income tax increased
to $87 nonetheless. :

In marked contrast to that, the government removed
the Excess Profits Tax, although corporation profits were
the highest in history. This contrast illustrates the very

crux of the class policy by which the St. Laurent gov-

ernment is introducing policies aimed towards reviving
fascism and committing Canada in advance to participation

in an aggressive imperialist war. a

ersonal income taxes don’t bother the 91 Cana-

dians who have incomes of more than $3,000 a week—or,
rather, paying the taxes don’t compel them to go without
gecessities. But, a worker who has to maintain himself,
his wife and two children ona wage of $40 a week
has to pay $35 a year—which means that his wife and
family had to go short of necessities. A worker fortunate
‘enough—or fighting enough—to earn $50 a week for

himself and wife and two children has to pay $151 a

year income tax, equal to earnings for three weeks. :

That amount of money would buy a lot of milk
and butter and meat. It would keep the entire family
in shoes for a whole year. It requires-no argument to
show that such taxation inflict hardship upon working
class families, :

e.
The outrageous burden of the income tax upon low
income groups is the more criminal because the gov-
ernment has maintained it while reducing the taxes paid
by big business in spite of the fact that the revenue 1s
Not required to balance the budget; on the contrary,
Finance Minister Abbott is boasting that he will have
a surplus of revenue over expenditures of more than
$600,000,000. ee

This condition of things must be ended. The

Practical way to change it immediately is to increase the

amount of earned income exempted from the personal
income tax. At the present time the amount exempted
is $750 a year for single persons, $1500 for married
couples with $100 additional for each dependent child-
This means that every unmarried worker who earns

’ $14.75 or more a week, and every ‘married worker ,

without children who earns $29.50 or more per week
as to pay income tax.

~The labor movement is united in the demand from.
all its sections that the exemption be raised to $1500 for
single persons, $2500 for married couples and an ad-
ditional $300 for each dependent child. The campaign
now being carried on by the Labor-Progressive Party is

for a change that has been demanded by both AFL

and CIO unions, a change which would merely raise the ,

_ €xemption in about the same proportion that the cost

f wages or salary exempted

Increasing the amount o
: diately increase the purchas-

~ Ing power of all working peop
€ secured now with a united ¢
entre labor movement.

7
4

‘

Je and the change could |
ffort on the part of the

fe

\

It is hoped that every reader of the Pacific Tribune
will Jend a hand in the campaign now in progress. Get
some of the postal cards from the office or members of
the LPP closest to you. All that is required is to
sign the postal card*and mail it—no postage stamp is
required. Every Canadian who recognizes the iniquity
of the present burden of the income tax upon low incomes
should sign one. Everybody who wants to get action on
it should get his or her friends to sign one.

Those of us who recognize the relationship between
this issue and the question of peace or war will get into
the campaign to get tens of thousands of democratic men
and women to sign this petition to the government to
raise the income tax exemptions now!

PARLIAMENT HILL By MARK FRANK

Gov't surplus could
raise exemptions

—OTTAWA
‘THE estimated $607,000,000 government surplus should

.be ploughed back into social services, in the opinion
of MP’s and others interviewed here. High on the list
of answers given was the need for raising the income
tax exemption /igure on low income groups for the com-
ing year. P:

H. W. Herridge (CCF-Kootenay West): “The first
thing ‘that should be done is to increase the exemption
on low income groups. Then we can well afford to increase
the war veterans old-age pensions and war veterans’
allowances.” eee
_ T. J. BENTLEY (CCE-Swift Current): “Extend so-
cial and health insurance with the surplus. The surplus
would not be so great if it were used for a useful human

. purpose, for example increasing the exemption figure and

taking the load of those with low incomes.”

PAT CONROY (secretary-treasurer, Canadian Con-
gress of Labor): “Some of the surplus should be used fer
people’s housing. Decent homes are of first rate import-
ance, Reduction of taxes at the bettom and stiffer taxes
at the top, should also be introduced.”

Rumblings of discontent are to be heard from Liberal
backbenchers like. ROLAND BEAUDRY of St. James
who recently told the House “that it does not necessarily
follow that because one generation incurred the expendi-
ture of war that the same generation must also bear the

brunt of its cost.” :

The member coupled this with an urgent plea that
the largest single group of taxpayers—those earning be-

_ tween $1,000 and $2,000—be given immediate tax relief.

Present: income tax exemption levels are $750 for a single
person and $1,500 for married.

Just where annual governmental surpluses disappear
to these days is to be found in last year’s estimates, where

interest on the public debt and other debt charges took

care of $455,656,000.
e

That certain ‘concessions” are to be made in this
year’s estimates and budget were foreshadowed in the
throne speech which took note of “buoyant” revenues.
How much is a pressing question everywhere.

Minister of Justice Stuart Garson on February 17
told radio listeners that surpluses had been used to re-
duce the public debt by huge sums, and that this was
a eorrect policy. He admitted that “because we have re-
duced debt we are all in a hetter position to keep down
taxes.” ‘ : : :

The minister immediately qualified his remark with
“but the extent of these tax reductions is a matter of

policy.” What is government policy? To spend new mil-

lions for war, As a matter of fact top brass chiefs of staff

_ want more than twice as much as the $252,000,000 parlia-

ment gave them last year.

—
>

, A thought for thie weak

_ People who spread lies ‘about ‘forced labor
in the Soviet Union: would like us to forget
about Forced Unemployment over here:

ye

\

‘

LABOR FOCUS
A\n analogy for
_Canadian labor

‘THE recent meeting of the executive of the American
Federation of Labor held in Florida and the manner
in which that body dealt with the Canadian trade union
movement reminds one of the revolutionary period of
the United States. The parallel begs description.
Before 1776 American colonists fought for a greater
measure of autonomy and independence against George
IITs intolerable rule.. They demanded the right to de-
termine their own affairs. They resented taxation with-
out representation. All appeals and petitions failed to

By J. B: SALSBERG

“move the Brtish king. He answered the petitioners

with increased oppressions. That led to the Boston
tea. party, to Bunker Hill and the victory of the inde-
pendence fighters. The mercenary armies and Benedict
Arnolds could not change the course of history.

Today the autocratic old men who make up the
majority of the AFL executive seem bent on following
George III's footsteps. They have learned nothing from
history. Relying on the bad advice of their fawning
“International representatives” (appointed governors)
and basing themselves on promises of support from
certain Benedict Arnolds in the Canadian labor move-
ment, the executive issued defiant and provocative de-
crees to their Canadian subjects.

The.underlying issues are unbelievably simple. Can-
adian workers began and continue to be organization-
ally affiliated to U.S. parent bodies of the major unions.
This is unusual in the experience of world labor. But it
is a reflection of the peculiar growth of Canadian
independence and Canadian industrialization.

Canada long. ago ceased to. be a colony and has be-
come an imperialist state in its own right, though
subordinate to the major imperialist countries of the
world, first Britain and now the U.S. Canadian labor’s
strivings for autonomy and greater independence are
not new. While continuing to “pay unto Caesar that
which is Caesar’s” Canadian trade unions have increas-
ingly asserted their autonomous right on matters affect-
ing them as Canadians,

The Canadian AFL membership have resolved to pur-
sue their own course. They refuse to become agents
for U.S. imperialism and demur from following the
splitting post-war policies which Canadian big business,
its labor agents and the top AFL circles have blue-
printed. The Canadian AFL membership, affiliated to
the Trades and Labor Congress of Canada, decided to
think independently and hammer out its own policy
on matters affecting the future of Canada. The at-
tempts of the Frank Halls to change that course met
with decisive defeat. The’ democratic will of the Can-
adian membership was emphatically affirmed at the
October TLC convention in Victoria.

Rejected by the Canadian members (the colonists), a
small group of international representatives (appointed
governors) rushed to the AFL executive (the court of
George III) and demanded stern action against the
rebellious democrats.
to appear before them in Florida (wasn’t Benjamin
Franklin also sent to the court of St. James prior to
the Boston tea party?)

What happened at the executive meeting? Full de-

tails have not been: made known but from the lurid + |

press statements which the AFL and the Frank Halls
issued and the gossip around labor temples, one can
guess what took place. The democraticaHy elected
spokesmen were treated like men guilty of lese majeste.
The Frank Halls were regarded as loyal satraps by the
doddering labor chiefs, .

In reply to TLC assertions the executive issued an
order; first, clean your house of all reds (anti-monarch-
ists and republicans) and second, henceforth each inter-
national representative in Canada (appointed governor)
shall have all the votes for the entire membership of
each international union at TLC conventions.

Away with the rank-and-file. Oh, yes, you can have
your congress (state legislature) but the international
representatives (the governors) will have all the votes.
That will teach them a lesson! In fact there will be no
need for a TLC. A dozen labor governors will get to-
gether and make all decisions,

Enough is enough. What an outrageous attitude!
What stupid arrogance these decaying labor kings dis-
play! And what servile creatures some of these “road-
men” prove to be! _

No one who has Canadian labor’s interests at heart
can desire anything, but unity of Canadian labor and

between Canadian and U.S. workers. Only agents of ‘

big busiess want an internecine war among Canadian
labor. Canadian workers and democracy can best be
served by strengthening existing unity. !

It can be stopped before it gets under way by the

universal reaffirmation of the policies arrived at at the

Victoria TLC convention. Every single local union can
make known its resolve to recognize the TLC conven-
tions as the highest expression of the will of the Can-
adian membership of the AFL and by unalterably re-
solving to recognize the TLC as the highest authority of
the Canadian membership. Stand by for the fight to
retain the autonomy and rights of Canadian labor!

PACIFIC TRIBUNE — MARCH 4, 1949 — PAGE 9

The executive ordered the TLC —