The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Tile FEDERAL government plans badger ol 0750000 urea entitlin revenoe for the Life Insurance VTclx idosonfiscal year Finance huhister Benson said in ct such $13341 its thatit would be ntouooe oyexomluures at commune and revenues concessions Removed orraws cpl Special tax concessions thatpermit the lite insuranee industry in Canada to pay fatlower taxes than other businesses should be endedFi nancn Minister Benson said Tuesday night He proposed In his budget speech that the life insurance industry be taxed in general the same as any other industry However he specified number of suggested rules to take into account the companies respon albilities to policyholders He also proposed that policy holders who make proilt by cashing in or selling policy be taxed on this additianal income It would apply only to in come accruing to the policy afterloday 77777 ilir Benson noted that thelite insuranceindustry now is taxed only on amounts set aside for silarehoiders during the year This was only small fraction of the business income of share holdcrowned companies and it allowed mutual companies and fraternal organizations to es scape he proposed changesand the industry is to be consulted by about 193000000 jnciuding $10006000 for the provrnces inl0€l the companies paid less tilan 1000000 in taxes PREMIUMS MAY RISE Mr Benson admitted that ap plying income tax rules to the industry may cause moder ate increase in premium rates oi new policies and moderate reduction in policy dividends to he paid in future on many colutstonding participating poli ESe 0n balance however the gain in revenue to us and to the provinces and the gain in equity in treating different channels of savings more fairly would out weigh the disadvantages Theechanges could eveorheip the industryhc suggested by vi the uncertainties about in tax situation which have been haoging over its head for years it could lead to new combi nations of basic insurance pro tection and savings in various forms perhaps making more ei fective used the provisions for registered retirement savings plans in drawing up some of the regu lationswould increase al revenues in the next fiscal year it These proposals mark the first implementation of recom mendations in the 1061 report at BUDGET HiGiiLiGHTSV mt minim lenses Social development tax of two per cent on taxable personal income imposed ef fective Jan withraonuai maximumof 5171 No changes made in tobacco or alcohol taxes or in general sales taxes Estate tax retormed to ex empt surviving spouse and to set exemption of $10000 per child other rates incensed to bring insame overail reve DHE Corporahon income tax ex tended to life insurance com panies hithertoalmost wholly free federal tax Gift tax reformed to apply progressive tax rate to cumu lative total of all luturaetax able gifts with total exempt tlonon gifts between husband and wife Companies required to ac celerate tax payments by two months paying an xtra smooonooin lomo Tighter personal tax enforcement proposed with computer checks op interest and dividends down to slot Faster taxndepreciation a1 iowed for onfarm grain stor age facilities acquired in 17 months after Aug 1050 lowed shanks and mnrtgag companies to be reduced by half flghter regulations planned ondepletion allowances for gas and oil wells and mines Target date 1910 set for implementation of income tax system gt Medical bills paid under ap msshonr eluded as exemption for in come tax purposes Revenue in current fiscal year estimated at $10 Vi05000000 and expenditures at nommoooo ialr changes mean in creased revenue of $65000000 incurrent fiscal year and of saasooomooiniaeevo Deticitof $075000000 fore cast or current fiscal year despite tax increaies Surplus of 5000000 ci pated for 106970 fiscal year 99velpaleat plans to cnntlo ue severe restrain con trollable expenditure pro grams seeldng vigorous co operation of provinces Gross national product ex pected to increase by about eight percent in 1060 and by between seven and eight per centinlmw gt the Carter royal commission on taxation Mr Benson said achangs is needed in handling the case of policyholder who casheslin or sells his policy before he dies because this return cant repre sent real investmenttihcome CITE TAXABLEINCOME The amount which would be added to his taxable Income would be the proceeds from the policy less what it cost the hold er For policies already in exist ence the taxpayer would be able to use as his cost to data the cash surrender value of his policy on its next anniversary That would ensure that the tax would apply only to invest meat income earned onthe poli cy after today the finance min ister said He proposed special rules to cover bringing the industry under corporation tax regula tions because 6f problems in measuring its lncom Customs Duties lire Reduced OllAWA CPD memos duties oilhorses andpate de ioie gees arc movingdmvn So are tarifis onveggs maple synrp onflee some fish and cooking gm under revbed inldnf schedules presented to the Com mom menial night as part at Finance Minister Bensons budg et First item in the long list shows duty on horse will de clineln annual seam until it can elder free Jan lmcom pared with the present change of $615 uate de hiiezerasa gooseliv er delicacyorlark pate are to enter tree immediately oiheran duty now is 16 percent so ports in various forms also is being massively lowered in some stolationsdor example afler more seven centsa polindtrom 94 cents now on whole and imzen eggs from mostiavcedoafien trading partners 1Holw Taxpayers Will Be OTTAWA OP Following tables illustrate the eflafi on threo classes of talopayers of Ft nance Bensons social development tax of two per onroaxnhioincmne tahltnmllnnns of fig Firi total income Second present mnbined fed eral andprorincial tax includ4 ing temporary slntalr and old age securitylax ingall prov ulces exceptQudbec Momioba and Sasioatdlewan The taupe oved medical care piamex Benson Séelrs ProvincialKm erisawmnedlo To centre Ioint Programs ceramics The federal government will seek vigorous Yenoperation from the prove noes in holding flow the growth of jointlyfinanced grants Finance Minister Belle son said in his budget speech Miller night sts ng hardestto control and are part of the reason the government substantially underestimated the growth of expenditures this year he said meet provinciaifinanca minis tars next nionlll andprcbably health ministers as well in an effort to hold down costs gt The finance minister said the disc stons with the provinces wfll elude study on the possi biiit of applying modern gays terns analysis and operational research to improving efil 14 cierleyof heaith servim and Economy efficiency ware also needed it the field of higher education but major poti cyassueshadto be considered Education was matter of provincial responsibility and the federal goverhmantl had no de Siret nterfere Butin three years the fed at governments contribution to higher education had inc by more thah ti timated$500000000 his year gum about$40 000 in i9651 Expe urea by ovcmmentincreased to fit 200000000ln 1061 from $3 7D000000 in 1051 Mr nson crease only 04000000000 had been spent by the federal gov ernment or its own direct pro grams ide from transfers to Affected standard deduction some for medical expenses and Married taxp er No dependents Present New 5l H5 income $2500 MN 3500 Present loo mammallasagna WHEAi issvs save save LINK sausaes sees Paroles for CHICKEN wmos PORK HOCKS PORK LIVER ANY oh or Turnov PEAMEAL BACK BACON SUPER VALUE eND curs genres RINDLESS mo socro ROUNDSTEAK 1filiiiiinlue 5iiiiéll nor BOTTLES lMpdltrsn GRAY DUNN sAch COOKIES no Fe111 Jam HONEY muosmv¢matas ans no FRESHGREEN