(/~ ECONOMIC FACTS

By Emil Bjarnason and David Fairey

-Socred arithmetic

At first glance, the 1979 budget appears to be full of good things
for the taxpayers of B.C. and indeed it does contain several items
which will benefit the people, particularly the low-income taxpayers.
Some of the benefits, however, are illusory, and all are overdue.

The biggest items are the reduction in sales tax, estimated to
amount to $133 millions, reduction in personal income tax, estimated
at $53 millions and the increase in the homeowner grant, amounting
to $55 million.

The combined effect of these tax reductions (including
| homeowners’ grant) is $241 million. This sounds like a very substan-
tial amount of money, and indeed it is, but this should be weighed
against the fact that in three years of the Socred government, taxes
on .the population, even after taking account of the election reduc-
tions will have increased by $861,000,000. In short, the government
is giving back about one quarter of the amount.by which it has in-
creased taxes during its short stay in office. Moreover, this increase .
in taxes does not include the gigantic increase in\ auto insurance
premiums and in medical service premiums. These two items alone
add about $225 million to the total tax increase under the Miniwac
government. :

The enormity of the tax machine can be judged from the fact that
notwithstanding the reduction in the rate of sales tax, from 5 percent
to 4 percent, the government is nevertheless budgeting for $883
million from this source in 1979 compared with only $873 million in
1978. In other words, it is expecting that one year’s inflation of con-
sumer prices will more than compensate for a 25 percent reduction in
the sales tax.

Similarly, the reduction in personal income tax rates will eliminate
income tax altogether on people earning $5000 or less, which is
welcome, and will reduce income taxes for people above that-level
(the higher the income, the bigger will be the tax saving) for a total
income tax reduction of about $53 million. But again, total income
taxes on individuals is expected to be $1,141,000,000, for a reduction
of only 3.4 per cent.

The budget is also providing some goodies for corporate tax- .
payers. Corporations are expected to have a reduction of about $4
million in capital taxes, and shareholders get an increase from 11 to
16 percent in the ‘‘dividend tax credit.’” The effect of this is that,
whereas a taxpayer with a salary of $30,000 will have to pay $8,470
income tax, one with $15,000 salary and $15,000 of dividends from a
B.C. public corporation will only pay $3875. —

On the expenditures side of the budget, the government has pro-
mised all sorts of good things, most of which appear on examination
to be pure hocus-pocus. For example, finance minister Wolfe pro-
mised to. appropriate $25.3 million from last year’s surplus for the
building of highways. Which is fine, except that his budget shows
total appropriations for transportation, communication and
highways reduced by $12.5 million. Presumably this means that he is:
slashing the regular highway budget by $37.5 million, then given
back $25 million of it, out of last year’s surplus.

Similarly, the budget speech promises to help farmers ‘‘to reduce
risks and costs’’ and to ‘‘improve farm productivity.’’ This is a very
laudable objective, except that the budget estimates reduce the
budget for agriculture by $17 million.

Likewise, Wolfe promises ten million dollars out of surplus
revenues to pay for ‘‘an intensified reforestation program.’’ The
budget estimate for forestry expenditure, however, is only increased
by $6 million.

For all the caterwauling about welfare statism and government ex-
penditure, the fact is that these have increased far more under the
Socreds than they did previously. Here are the. facts in summary
form: :

1975/76 budget 1979/80 budget
Per Capita Expenditures

Regular budgetary expenditures 1210 1827
Medical Services Premiums ; 38 $7
ICBC Premiums 67 138

totals 1415 2020

The figures in the second column are the per capita costs of:
government to the citizens, after the pre-election budget reductions.
The Lord giveth, and the Lord taketh away.

There is indeed, no real reduction in taxes except for.a few people.
The Socred government is expecting an increase in transfers from the
federal government of $146 million, which simply means that the
Socred spending will be paid for out of taxes collected by the federal
Liberals instead of the provincial Socreds. sae

MAY DAY GREETINGS
UNITE TO DEFEAT
THE SOCREDS

bea

PART! COMMUNESTE DU CANADA
Elect a progressive majority including -
Communists to Victoria

B.C. Prov. Cttee, Communist Party

408-193 E. Hastings, Vancouver—684-4321

PACIFIC TRIBUNE—APRIL 27, 1979—Page 12

Ruth Lowther, Vancouver,
writes: I found the article ‘‘Pop
Music is Big Business,’’ by A.B. Ir-

’ win (Tribune, Apr. 13,1979), most

interesting for two reasons. First, I
am a young adult whose experience
with the pop music industry has
been similar with the ‘‘Fred’’
described in Irwin’s article.
Second, having gotten somewhat
‘wise to the system’’ as Irwin sug-
gests for Fred, and still enjoying
some of the rock music being pro-
duced, I am in slight disagreement
with the author’s analysis.
However, the writer makes a very

_ valid point about the pop music in-

dustry and the effects it. has on
millions of young Freds and Fredas.

The rock and pop (particularly
pop) market does indeed constitute
a multi-million dollar business
dominated by multinational cor-
porations like Capital, Columbia,
RCA and the infamous K-Tel.

Irwin is correct to point out that
the most profitable, quick-cash ven-
tures thrive on ‘‘singers’’ who are
backed by high pressure media
advertising — complete with
saccharin-sweet or tough-terrific
images and sales gimmicks.

What the writer neglected to
mention was that pop and rock
music of a particular type usually
achieves the most successful sales.
‘Music’? with the simplest com-
position, the loudest or steadiest
heartbeat, and the least thought-
inducing lyrics usually sells the best.

This type of music is continuous-
ly, repeatedly rigged over the AM
pop stations. and is sprinkled
through much of what FM (‘‘album
rock’’) stations have to offer.
Hours of such music on the radio is’

akin to hours of beer commercials. -

The result is similar but the
former is more immediately
soothing. It is hypnotic, it regulates
the heartbeat and nerves, it has a
calming effect on the most active
young avid listeners, and is, in ef-
fect, -vegetating. That is why
“Fred’’ involves so much of his
time listening to it — or rather, feel-
ing its effects. —

I didn’t like the ridicule directed
against poor ‘‘Fred’’. He is a victim
of pressures we all feel, after all. It
is noi necessarily stupid to crave so
much hype; it is unfortunate. :

So much exists in our. social
system today that is very confusing
for many people. It makes young
people in particular angry and

_ frustrated. Exorbitant prices, lay-

offs, and a constant struggle to get

The Tribune at these
Vancouver stores:

EAST SIDE
Black & White Groc.—592 E. Broadway
Boundary Store—3680 E. 22 Ave.
East End Co-op—1806 Victoria
Frank’s Grocery—3378 Findlay
Grandview Cigar—1721 Commercial
K & K Mart—870 E. Broadway
Lakeview Grocery—3908 Victoria
Latin Foods—1680 E. 13 Ave.
McGill Groceries—2691 McGill
Salvino’s. Grocery—1410 Victoria
Templeton Market—127 N. Templeton

WEST SIDE
Alma Market—3643 W. 4 Ave.

SOUTH VAN.
A.M. Solidum Grocery—4305 Main
Central Plants—1410 E. 41 Ave.
Chuck’s Buy-Rite—5069 Joyce Rd.
Des Stationery—6131 Fraser
Loop Groceries—5562 Joyce Rd.
Lowe's Food Mart—5125 Joyce Rd.

DOWNTOWN
Co-op Bookstore—353 W. Pender
Universal News—132 E. Hastings

More on pop music and big business

decent work can easily make young
people feel almost helpless.

Add to this feeling a tense, ag-
gressive worjd, an education that
often ignores or mis-explains it, and
media that bombards us with
suspiciously whitewashed inter-
pretations of truth. The result is the
daily existence of a lot of anxiety in
all of us who -are ‘‘wise to the
system’’ or not.

After.a day of work most people
in the world engage in some method
of relaxation — a cold bottle of
beer, vodka straight, bird-
watching, plant-growing, music-
listening, reading, and so on. Ac-
tivities which relieve tension in
small doses are beneficial for keep-
ing one’s health and sanity.

Some rock and pop can be com-
plex in musical composition, with
esthetically, intellectually or moral-
ly decent lyrics. Quality rock or pop
may not be as worthy as blues, folk,

_ or the classics, but it can be equally

enjoyable and as valida form of
relaxation as many others. And
sometimes — although admittedly

“seldom — rock can come up with

good social comment.

to abolishing it.

However, the point is that in our —
society conditions and contradic-—
tions make people need stronge
doses of relaxation. Drinking, drug- —
ging, rock-pop hype, television”
nonsense, ecstatic religion, and —
other social sedatives are used in —
fantastic proportions. eS

People are so confused or Wor-
ried and tense we’ll often over-
indulge on anything just to numb
the ill-effects of living. The pop-*—
rock industry, with its simplistic,
hypnotic, vegetating products, are —
exploiting the particular thirsts 0
young people. 3

It is true that we ‘‘Freds’’ could
try to be aware of what is putting S
much anxiety in our daily lives; bu
then, once we have gotten ‘“‘wise to
the cause, we could devote our lives”

I

te
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