COMPLAINTS LODGED BY LOCAL 1-417, IWA with the Labour Relations Board against

¥

THE WESTERN CANADIAN LUMBER WORKER

|

the Columbia Auto Customs Ltd., Salmon Arm, were successful in having three of the above employees of the Firm reinstated to the job with back pay. The group are, left, seated, Arvett Wirch, Paul Johonson, Cornelius deDood; standing, left, Dick Larson, Local

Business Agent; Jim Wlasitz.

CLC BRIEF PRESENTS

Labours View on Taxation

The Canadian Labor Congress says the federal government should be given power to alter tax rates up or down slightly as an economic weapon—without waiting for parliamentary

action.

“We think that a case can be made for providing the federal government with carefully defined discretion- ary power to use the income tax more effectively for fiscal purposes,” the CLC told the Carter Royal Commission on Taxation.

Because tax rates can only be altered by parliament at present, the result may be “a slow and cumbersome use of fiscal policy when economic conditions warrant swifter action.”

“Parliament is not always in session and may be away at precisely the time that the economy needs the kind of stimulus that reduction in certain income tax rates may be able to give it,” said a 28- page brief prepared by the CLC.

“Tt seems to us that the federal government should thus be enabled, without waiting for parliamentary ac- tion, to vary tax rates within a narrow specified range of several percentage points.”

The brief, submitted by a delegation headed by Con- eress Secretary - Treasurer Denald MacDonald, spelled out the views of organized ‘abor on taxation.

Highlights of the CLC’s basic policy position in- cluded:

@ Whenever possible and

oracticable, the incidence of

equitable basis — by taxing the poor less than the rich.

@ Used as a fiscal wea- pon, the tax system can play an important role in regulat- ing the nation’s economy, helping to attain full employ- ment and adequate growth rates.

The CLC said that taxation is more than a means of pro-

ducing government revenue.

Used properly, it could be a key instrument in guiding the economic climate of Canada.

Dealing with the old-age security tax — recently in- creased to four per cent to finance the $10 boost in old- age pensions — the Congress argued that it has become the most regressive feature of the entire tax structure.

The current four-per-cent tax on the first $3,000 taxable income means that a person in the low income category pays the same old-age secur- ity tax as another with a much higher income.

“The extra burden imposed at the lower income levels because of the extreme re- gressiveness of this tax makes a mockery of the principle of ability to pay.”

To eliminate the criticism, the CLC urged that the $3,000 ceiling be removed so that the burden of the tax could be distributed more progressive- ly within the income tax structure.

Other points made in the wide-ranging brief:

The present 20-per-cent tax credit on dividend income is excessive and serves to make the income tax more regres- sive than it needs to be. A 10- per-cent rate, at which it stood before 1953, would seem to be more equitable.

If present corporate tax rates have an adverse effect on profits—as some proclaim —then logically the position of profits should have deter- iorated. But this hasn’t hap- pened. Last year the volume of profits was the largest ever and most forecasts call for even higher profits in 1964.

Tax incentive can — and should—be used to induce in- dustry to locate in econom- ically depressed regions.

Sales tax should be studied to see how it can be related more closely to the ability-to- pay concept. “We should be most interested if the com- mission investigated the pos- sibilities of replacing the flat rate with variable rates, which would take into consid- eration inequalities in the buying abilities of consum- ers,”

Accusations that co-opera- tives are not paying their fair share of taxation are unjusti- fied. “There seems tobe a good deal of misunderstand- ing about the nature and pur- pose of co-operatives and we hope that your inquiry will help to clear up such mis- understanding.”

and pioneer parades.

“BIG WHEELS’ of this type were once a common sight in logging operations in the log” pine forests. Long out of use, the wheels used to skid logs now are seen only in m.

2nd Issue January, 1964

m

TE =

At Loggers Meet |

iL

AUN

.

A. = SEN GORDON DAVIS, Local 1-71 Business Agent, is photographed with two of the Local’s office staff, Gwen McDowell and Wes

Ross.

5 iS

ay

Educational Seminars held by Local 1-424, IWA, at Prince George and Williams Lake. The class instructors, Joe Miya- zawa, Regional Director of Research & Education, and Henry Hutcheson, Vancouver lawyer, alternated with one day at Prince George and one day at Williams Lake. The Local Officers report the classes were so well received that they hope to hold more such seminars in the future.

Q

tk

cee eM

Old Time Logging

TMU

(aks ot i

“short useums

—Int. Woodworker

mS

oP