In this article, Emil Bjarn-
ason of the Trade Union Re-
search Bureau, replies to n
leafllet recently distributed
throughout the province by
the Coalition government.
The leaflet, headed “Pur-
chasers’ Pennies Pay the
Bill,” used cost-of-living fig-
ures from The Case Of The
Dwindling Dollar, a ‘Trade
Union Research Bureau book-
let compiled by Bert Mar-
cuse and Emil Bjarnason, to
bolster its specious defense
of the provincial sales tax.

By EMIL BJARNASON

"THE Coalition spoke the truth
“for once when it named its
sales tax leaflet, ‘“Purchasers’
Pennies Pay the Bill.” The rest
of the pamphlet it devoted to the
less candid notion that after all
it is the millionaires’ dollars that
pay the bill, and those whose in-
comes are measured in pennies
benefit from the tax.

The Trade Union Research Bur-
eau is quoted in the pamphlet as
an authority on workers’ budgets.
The compliment is appreciated,
but the Bureau dissociates itself
from the government’s use of the
Bureau’s fitures, and takes issue
with the analysis of the tax as
presented in the pamphlet.

Coalition pamphleteers do not
reveal the basis of their estimate
that the sales tax will yield $12,-
000,000 annually, nor do they point
out that the higher the cost of
living soars the bigger the take
becomes. The sales tax might in
fact be called the double-squeeze
tax—the higher the cost of living,
the more the tax adds to the cost
of living.

Accepting Finance Minister Ab-
bott’s word that Canada’s nation-
al product this year will amount
to $15,000,000,000, previous exPeri-
ence indicates that about $1,500,
000,000 will be British’ Columbia’s
Share, Of this, approximately 30
Percent, or $450,000.000 will be
Made up of food, medical expen-
ses, government expenditures and
other items not’ subject to the
Sales tax.

Thus at three percent it appears
that the sales tax take will be
closer to $30,000,000 a year than
$12,000,000.

The government
states that, apart from the muni-
cipalities’ share, this fund will be
earmarked for social security and
“will not be touched for any other
Purpose,”

This neat piece of double-talk
is intended to hide the fact that
while the government is taking
in $30,000,000 in new revenue it
is not undertaking any new social

pamphlet »

Annual Provincial
Picnic
SUNDAY, JUNE 13th -

Confederation Park

GAMES, SPORTS, MUSIC
& REFRESHMENTS

Auspices: Association of United

Ukrainian Canadians

security expenditures. One dollar
is a3 good as another. And if pres-
ent social security expenditures
are in future to be paid out of
sales tax money, then an equal
amount of money becomes avail-
able for other purposes (such as
paying for reforestation without
imposing adequate forest taxes).
So let’s not kid ourselves that by
paying this tax we are buying
social security.
e

THE Trade Union Research Bur-

eau: takes exception to the
use of its budget figures to justify
a claim that the tax will amount
to less than one percent on wage-

earners.

In the first place, the govern-
ment’s pamphleteers assume no
tax will be paid on the $33 month-
ly rent bill. This would be true if
all people paid rent. There are
still people around who are old
enough to have found apartments
or houses in the days when they
used to be rented. But nowadays
increasingly large numbers of
people have to buy to get a place
to live. Even apartments are sold
instead of rented. Therefore at

‘least half of Vancouver’s popula-

tion have to put up their $33 a
nonth (which is a minimum fig-
ure) into buying and keeping a

“The nation’s business

Research Bureau answers Coalition on ‘pennies from poor’

home, and therefore pay $1 a
month sales tax on it.

~On other items in the budget,
the pamphlet assumes that the
tax will be less than three per-
cent, apparently because items
under 15 cents are not taxed. This
argument is false. It is true that
if you buy an article for 14 cents
you pay no tax. But if you spend
16 cents you pay one cent tax.
This works out to six percent. Ad-
ding the exempt purchase at 14
cents to the taxed purchase at 16
cents you have a tvutal of 30 cents
on which you pay a tax of one
cent, which works out to be three
and one third percent.

‘Hunks, aliens’ said Muir in 1940

\IEW light was shed this week
~* on the anti-labor campaign be-
ing conducted by Nanaimo’s May-
or’ George “Dollar-Forty” Muir
when it was revealed that as long
ago as 1940, he was engaged in a
campaign of red-baiting and in-

aenvta, we be neh

ited Says Communists

+ Worse Than. Nazis Oho

Rte suggestion, all
W for sources, including the new Arena, “©
the were offered to the government ri
ha: to assist in recruiting. » :
Al. Muir claimed that “fifth q
bn column” activities are rife in the
B qcity and asserted that the mines c
be are full of “hunks and aliens,” -r
while “our own men” are on. the
rolls. ‘

citement against foreign-born citi-
zens. at

At that time, Muir, then an al-
derman, indicated willingness to
use starvation as a, weapon against
political opponents when he urged
Nanaimo City Council to strike all
“Communists” from relief rolls.

Casting light on his view of the
war in which thousands of Can-
adian lives were saved because
the Soviet armies bore the brunt
of the fighting, was his state-
ment that Communists are
“worse than Nazis”. At the time
Muir made this statement, Marko
Vitkovich, the Nanaimo coal min-
er now charged with uttering a de-
famatory libel, had already serv-
ed one of his 5% years in the Can-
adian army fighting fascism.

In’ the pattern of his recent red-
baiting speeches urging the build-
ing up of the reserve army, was
his 1940 call, adopted by the coun-

cil, for all Nanaimo resources, in-
to be
thrown. open for recruiting. In
each case the context of the call
indicated that the predominant
use to which he desired the arm-
ed forces to be put was not fight-
ing fascism.

cluding the mew Arena,

Muir slandered the labor move-
ment ‘with the statement that
“fifth column” activities were rife
in Nanaimo, and made as shame-
ful an incitement against foreign-
born citizens as has ever been ut-
tered by any public
tive in B.C., when he said the
mines were full of
aliens” while “our own men’ are
on the relief rolls.

This episode from Muir's past
was revealed in this clipping from
the Vancouver Daily Province,
which was not then on labor’s
“unfair” list.

Ottawa thwarts Israel recognition

FRANK

—OTTAWA

ANADA’S current dumbness in

the matter of. recognition for
the state of Israel highlights the
essentially reactionary role which
Canadian foreign policy plays to-
day.

Insistent questioning by mem-
bers of parliament brings no reply
from Louis St. Laurent, minister
for external affairs. He is as sil-
ent as a clam. But down in Lake
Success where sessions of the Se-
curity Council are under way, ety
acting-leader of the Canadian
delegation, Ignatieff, makes Im-
portant pronouncements of pol-
icy. Canada will not back sanc-
tions or force against Arab ag-
gression—this the substance of
his position.

Here in Ottawa, the Palestine
situation is a matter of “high pol-
icy”, according to the East Block
politicos. Around the issue is a
curtain of secrecy and very in-
volved legal argument. “Defined
poundaries” are not present in
Palestine, they say. Then there
is the matter of “de facto” recog-
nition. “Sometimes it takes a lot
of years,” before such recognition
is granted, was the cynical com-
ment of one official who partici-
pated in the well-known UN de-
cision on partition. :

All of the official argument here
takes on a strained legalistic tone,
which is out of tune with the real-
ties of the Palestine situation. In
the light of the quick recognition
awarded Israel by the big powers
the U.S. and the USSR—the pe-
culiar antics of the Canadian gov-

By MARK

ernment following the lead of
Britain are somewhat confusing.

One theory is that Canada is
still suffering the British “con-
nection”; and is furthering the
imperialist politics of the Empire
in its struggle against the en-
ecroachments of U.S. might in the
Middle East.

Another point of view held by a
top-ranking MP close to govern-
ment circles is that what is ne-
cessary is “the loss of some 2,000
Jewish lives in battle” before rec-
ognition can be granted. What is
important, says this dealer in hu-
man lives, is a testing of the state
of Israel. Such a loss, of life in a
victorious battle with the Arab

_ forces would frighten the Arabs

into accepting the new Jewish
state and tell the jworld that
Israel was here to stay.

Here is where all St. Laurent’s
fine bold talk on the importance
of “collective security” leads us.

Canadian foreign policy, as an-
nounced by St. Laurent, which is
“horrified’ about, events in Czecho-
slovakia and Italy,| the onward
march of people toward greater
freedom, seems undisturbed about
a real fight for freedom in the
Middle East. Quick to step in and
be the great initiator of the scheme
to disrupt the UN with a “collect-
ive security” program directed
against the USSR and East Eu-
rope; enthusiastic about the no-
torious western military bloc—a
bridgehead for American imperial-
ism in Europe—Canadian foreign
policy is timid and apprehensive
about implementation and the use
of UN collective force against the

puny armies of the Arab East.

If Canada is the big ideological
centre for the new concept re-
garding a subverted UN without
the USSR, reducing the concept
of one world to a system of mili-
tary power blocs, then its latest
position on aid to Israel is a fur-

.ther extension of this same pro-

gram .Refusal to aid Israel or pro-
vide recognition is a body blow
at the UN Charter. It will lower
Canada in the eyes of small na-
tions the world over, and take us
a further step towards dissolu-
tion of the single hope for world
peace—unity of the big powers be-
hind the principles of the UN.

PROVINCIAL LEADER

representa,

“hunks and -

If we make these changes in
the government’s table, we find.
that the “typical” worker, earning
$172 per month, would pay at least
$2.50 in taxes.

Moreov.r, the government pam-
phiet neglected to mention that
the family budget which they
blithely lifted from The Case of
the Dwindling Dollar is a relief
budget. It repr_sents the mini-
mum-requiréd for health and de-
cency for a family which spends
nothing on tobacco, alcohol, tea,
coffee and other “luxuries.” It
cannot therefore show the effect
of the tax on normal workers’
families.

8
‘THERE are alternative sources
of revenue which do not pen-
alize living standards.

Until 1946, corporate business
in British Columbia paid from
$40,000,000 to $45,000,000 a year in
excess profits taxes. These taxes
have now been discontinued.

True, the excess profits tax was
a Dominion tax. It is also true
that corporate profits are thereby
escaping taxation and would have
provided an excellent source - of
new revenues for the provincial
government,

But listen to what the pamphlet
says about that:.“It (the sales
tax) would take a bit. of change
from the big spenders. In fact,
probably 65 percent of it would
come out of big business and in-
dustry. Luxury buyers would con-
tribute to the extent of 3 percent
on the luxuries they purchased.”

That does it. Believe it or not,
folks, the Coalition government
has devised a retail sales tax for
the specific purpose of taxing the
profits of big business.

e

Practically every authority on
public finance since Adam Smith
has condemn¢d the sales tax as a
particularly vicious way of rais-
ing revenue. So the government
wants it understood that this is:
not a sales tax. It is a “social
security tax” if you please.

It isn't that the government
wants to impose an undue burden
on the poor, It’s just that every-
body should pay his fair share,
and up to now old age pensioners
have been escaping paying 48
cents a month that the govern-
ment announces it will collect
from each pensioner with this
tax. ;

After all, the Coalition govern-
ment upholds “free enterprise.” It
is just as well that we understand
that taxation of old age pension-
ers is one of the things “free en-
terprise” implies.

LABOR PROGRESS!

MONDAY, JUNE

PARTY

14TH, 10.15 P.M. —

-  -C.B.C. STATIONS

PACIFIC TRIBUNE—JUNE 11, 198—PAGE 7