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ee 3 7 Provinces. [Unique Tax Measure Can Get Aid, Sharn Sauc | WEES Po ww Lod OTTAWA (CP)--The federal government can steer a course that will give the provinces room to flex their financial muscles while Ottawa retains effective control measures for the economy, Finance Minister | Sharp said Tuesday night But the year will be a crucial one in federal-provincial tax ar- rangements, he told the Com- mons in his budget speech. A federal-provincial tax struc- ture committee is making a re- view of the fiscal relations be- tween the two levels of govern- ment, Mr, Sharp said. Underly- ing this study was fast-paced growth in spending at the pro- vincial and municipal levels. Federal expenditures were running about even with the in- crease in the gross national product. But requirements of the mu- nicipal and provincial govern- ments were "growing at a higher rate." NEED ACCESS TO MONEY | The provinces needed access | to enough revenue to meet their needs. Ottawa needed sufficient scope to use fiscal policy for economic purposes. Mr. Sharp} said it is possible to achieve | both these aims. | He said the present equaliza-| tion program to help less, wealthy provinces maintain growth "is not entirely satisfac- tory." He wanted a formula with a "wider concept of fiscal capacity" based on the whole spectrum of provincial reven- Hits Cor OTTAWA (CP) -- Canadian) corporations beginning May 1 will have to pay for 18 months special taxes which, however, they'll get back at a iater date --with five per cent interest. Finance Minister Sharp intro- duced the unique measure in \his Tuesday night budget. It was reminiscent of compulsory Second World War savings achieved by a surcharge on personal income taxes and re- paid after the war. Mr. Sharp said the five per cent tax on cash profits of more than $30,000 is designed to divert and immobilize tempor- arily a "'modest portion" of the flow of business cash profits into capital expenditures and, consequently, to slow down the current boom. Mr. Sharp conceded that all the ins and outs of the new tax haven't been worked out yet. He invited suggestions from MPs, businessmen and tax "'ex- perts."" ESTIMATED TAX He estimated that the novel refundable tax on cash profits will yield the federal treasury some $250,000,000 in a full year. This money will eventually have to be paid back to in- dustry, plus interest at five per cent a year. The refundable tax will be payable monthly starting in May for 18 months. It will be repaid after an interval of 18 to 36 months after receipt. "The specific period within this range would be determined ues. In the matter of special} grants given the provinces for) specific programs, a_ balance) had to be found between Ot- tawa's duty to lead in matters of national importance and the necessity to respect areas of provincial jurisdiction. "This will be no easy task but, given sufficient imagina-| tion and good will, I have no doubt whatever that we can find workable solutions." The whole question of divid-| ing taxes among the federal and provincial governments will no doubt be discussed at a full) federal - provincial conference| as well as at meetings of the tax) structure eommittee, Mr. Sharp} said. | MAKE MINIMUM TROUBLE | He hoped the provinces would "continue to follow our lead" in order to keep the trouble for the taxpayer at a minimum when it comes te filling out his tax) form. | He recalled that after Ontario announced its budget, contain- ing a planned increase in per- sonal income taxes, he had said that any province was free to doe this and he hoped it would continue this freedom under the by the government in the light of the economic prospects as assessed late in 1967," Mr Sharp said. Here's how the tax will work. It will be payable by all cor- porations--except the few, such as charitable corporations, which are already tax-exempt-- and by certain types of trusts lon specified types of income. The base for the tax will be the taxable income of the com- pany for the current year, less the income tax payable on that income, plus capital cost de- ducted in determining income, plus depletion allowances and certain other items. In determining the tax base, the revenue department will de- duct from this adjusted net tax- able income principal payments due and made on the debt of the company which had an orig- inal term of three years or longer under written loan con- tracts existing at March 29, 1966. actor, att these additions and subtractions, the tax on the amount remaining will be five per cent. The monthly payments start- ing in May will be made on an estimated tax base computed by reference to the present or immediately preceding tax year, subject. to adjustment at the end of the 18-month period. porations Officials said outside the Commons they expect cumi- plaints about why corporations, but not personal income tax- payers, 'should be allowed re- fundable taxes. They said the cancellation of the 10 per cent personal income tax deduction restores the status quo. Corporations hadn't been given this benefit last year. OTTAWA (CP) -- The Com- mons passed the govern- ment's $270,000,000 supplemen- tary spending estimates for 1965-66 in five minutes Tuesday night after breezine through the estimates of five departments. The estimates bill passed after Works Minister Mcllraith replied to a request from Lib- eral MP Ralph' B. Cowan that the government get a ruling from the Supreme Court on whether it is legal for private $270,000,000 Estimates Pass In 5-Minute Breeze Through for building purposes. Mr. Mcliraith said jurisdiction over the matter is complicated, but the government plans to have discussions with the On- tario government on the mat- |ter. Mr. Cowan said he didn't like the minister's explanation, but allowed the works estimates to pass. He repeated his request that the government withhold a permit' from a developer in his constituency of York - Humber developers to fill in water lots on the shores of Lake Ontario until a Supreme Court decision on the matter is obtained. Debate on the water lots ques- tion took up nearly one hour of the Commons' time. It began when Tom Barnett (NDP --Comox-Alberni) said that Mr. Cowan in a speech on the subject last Friday had indi- cated there had been "complete flaunting" of the Navigable Wa- ters Protection Act by the de- velopers. "If the provisions of this act aan he blatantly ignored in one part of the country, pernaps there is a tendency to ignore it in other parts of the country." DIGS TROPICAL MUD Tne ywoiid's biggest dredger, Banka I, is in service at the harbor of a tin mine at Sungail- iat, Indonesia. THE OSHAWA TIMES, Wednesday, Merch 30, 1966 2] New Home Recipe Reducing Plan It's simple how quickly one may lose pounds of unsightly fat right in your own home, Make this home recipe yourself. It's easy, no trouble at all and costs Uitte, Teet en te vour drug store and ask for four ounces of Naran| Concentrate. Pour this. into a pint bottle and add enough pofruit juice to fill the bottle, ake two tablespoons full a day as needed and follow the Naran Plan. If your first purchase does not show you a simple easy way to lose bulky fat and help slender more graceful curves; reducible pounds and inches excess fat don't disa neck, chin, arms, abdomen, hips, calves and ankles just return the empty. bottle for your money back. Follow this way en- dorsed by many who have tried this plan and help bring back alluring curves and graeefui slenderness. Note how quickly bloat disappears--how much bet- ter you feel, More alive, youthful appearing and active. hast att 4 Jean-Pierre Filipinetti has been fascinated by fine cars all his life. His family's castle, the Chateau Grand- son, houses 8 collection of \over 80 classic cars. F There will be a general re- duction of $30,000 which, Mr. Sharp said, should be adequate to mitigate the impact of the tax on smaller businesses which don't have ready recourse to the capital market. new arrangements to be worked | out this year. | He also said then that both| levels of government should | take into account what each was doing in this field. In the budget speech, Mr. Manufacturers Get Extension OTTAWA (CP)--As part of its plan to slow the pace of con- Jean-Pierre Filipinetti owner of a $14,000 Mercedes, test-drove a 66 Ford. His opinion: Ford rides quieter. Sharp said each level of gov-|struction during the next few ernment should 'accept respon-|months the federal government sibility for the extent to which|is adding an extra year to the it uses this tax, knowing the/deadline for manufacturing other's views." companies locating in desig- He described the income tax! nated areas to start production. as "'the fairest of our taxes" but said it should be reformed to make it fully equitable. "I believe it should be used by both Parliament and the pro- vincial legislatures." Sharp Asks | | For Restraint _ OTTAWA (CP) -- Finance} Minister Sharp wants labor and' management to use restraint) this year in pushing for wage and price increases. He-said Tuesday night: | "This is a time when all Ca-| nadians should observe . . . straint, in our own long-term in- terest, and resist the tempta- tion to exploit the bargaining positions which the present boom presents to many in the; country." | Mr. Sharp told the Commons| the keynote to his 1966 budget | is moderation, "This is what is needed today... ." | Although the labor force was increasing at an unusually high) rate, the manpower situation | was tight. | "Shortages of skilled labor} have become widespread, short- ages of other labor have ap- peared and unit labor costs have been rising," he said. Recently the Canadian Labor in-hishudeot ios suaget Congress, in its annual brief to | - the cabinet, criticized calls for, restraints in wage demdfrids: STARTED WITH KIDS Billy Mumy of Lost in Space started acting with a children's | wealthy Finance Minister Sharp. said in his budget speech Tuesday night a resolution will extend to April next year from April this year the deadline for firms with plants already started to begin production and qualify for a three-year exemption from in- come tax. HIGHLIGHTS THE CANADIAN PRESS Moderation and enterprise By | needed to keep economy op- erating at full capacity. OFS Without restraints;-G+ National Product would go up nine per cent this year--five per cent in output and four per cent in prices. Long-term solution to bal- ance - of - payments problem, now met by U.S. borrowing, seen in increased sales abroad and in larger domestic invest- ment by Canadians. New tax agreements could give provinces larger tax fields, improve grants for less- provinces, and still retain federal leadership in fiscal policy. Equity and efficiency key- note of tax reform exepcted to result from report due by end of May from Carter royal commission on taxation. LOVER 30 YRS. IN BUSINESS | a STEPHENSON'S ARAGE WHEEL ALIGNMENT FRAME STRAIGHTENING GENERAL REPAIRS TV show he first noticed while | PPE! by > Me PLE LT!) recovering from a broken leg. |MREM@ESiL S49; ead a oe Ov ER 40 YEARS EXPERIENCE! of the Ford LTD. Compare your car with a '66 Ford and you'll begin to understand M, Filipinetti's amazement. Ford's quietness is the result of deep-down quality and engineering excellence. Its strong, solid body gives you quality that compares with the world's most expensive automobiles. It also gives you years of dependable operation, years of satisfying ownership. And Ford for '66 offers you more engineering magic: Optional new Stereo-Sonic Tape System that turns your Ford into a concert hall. Exclusive Magic Doorgate' for wagons swings open like a door for people and down like a tailgate for long loads. Silent-Flo Ventilation on 4-door hardtops for draught-free comfort. Optional Automatic Speed Control to let you dial your chosen speed on Freeways. Take your own car along to your Ford Dealer. Then QuietTest a 1966 Ford and compare Ford's quiet quality. Ford's Quiet Man recently demonstrated the extraordinary quiet of the '66 Ford to owners of some of Europe's most expensive cars. Here he discusses a '66 Ford LTD with M. Filipinetti atthe Chateau Grandson. Compare your car with the quiet of Ford's solidly built body. Take a "Quiet Test" today. "It's incredible," said M. Filipinetti, "the Ford is quieter." "The quiet, it's tremendous," continued M. Filipinetti, "it's incredible that you could build a car so luxurious as this at such a price." M. Filipinetti's personal car is a Mercedes-Benz 600. It is one of the largest and most expensive cars made anywhere in the world and considered by many to be the pinnacle of luxury motoring. So it was high praise indeed when M. Filipinetti commented favourably on the luxury TEST DRIVE THE QUIET QUALITY OF THE 66 FORD teoke advontage of it! 24 hour ser- vice; and radio dispatched trucks al- weoys on the ready to serve you, Fuel Oi! Budget Plan available. ol NOW IS THE TIME TO CONVERT AND CALL McLAUGHLIN 723-3481 TO BUY OR LEASE~SEE YOUR FORD DEALER | MACDONALD & 0 RD S ALES , 219 King St. East -- Bowmanville, Ont. -- 623-2534 and 520 King St. W. -- Oshawa, Ont. -- 723-5241 110 COAL & KING ST. W. SUPPLICS