Harry Rutherford JACKMAN

JACKMAN, Harry Rutherford, LL.B.

Personal Data

Party
Progressive Conservative
Constituency
Rosedale (Ontario)
Birth Date
November 5, 1900
Deceased Date
November 22, 1979
Website
http://en.wikipedia.org/wiki/Harry_Jackman
PARLINFO
http://www.parl.gc.ca/parlinfo/Files/Parliamentarian.aspx?Item=5f9946d8-6285-42b5-8cf0-d207fcf461a7&Language=E&Section=ALL
Profession
lawyer, manager

Parliamentary Career

March 26, 1940 - April 16, 1945
NAT
  Rosedale (Ontario)
June 11, 1945 - April 30, 1949
PC
  Rosedale (Ontario)

Most Recent Speeches (Page 534 of 538)


July 22, 1940

Mr. JACKMAN:

And never will be worth anything.

Topic:   INCOME WAR TAX ACT
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July 18, 1940

Mr. JACKMAN:

It was also the hon.

member's maiden speech.

Topic:   CUSTOMS TARIFF
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July 11, 1940

Mr. JACKMAN:

I should like to ask one or two questions in regard to the whole subject matter of the excess profits tax, which perhaps might better have been asked at the beginning rather than at the end. In his budget speech I understood the former Minister of Finance to say that this excess profits tax would bring in approximately $100,000,000. That was the estimate for a full year. The ordinary corporation tax is virtually, or in effect, raised from 18 per cent to 30 per cent, so that now our normal corporation tax is 30 per cent and the excess profits tax, properly speaking, is any sum which may accrue to the government over and above this normal rate of 30 per cent. Has an estimate been made as to how much of that 8100,000,000 it is estimated would accrue merely from the operation of the increased normal corporation tax, leaving aside any excess profits tax?

Topic:   EXCESS PROFITS TAX ACT
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July 11, 1940

Mr. JACKMAN:

I hope the minister will give full consideration to including as exempt under resolution 7 investment companies other than the personal corporations which are mentioned in the resolution. I should like to point out to him what a serious disability these investment companies labour under at the present time in connection with the corporation tax. Let me give an illustration. A trust with a capital of $1,000,000 invested, say in bonds at 5 per cent, has an income of $50,000. The management fee, which is the charge for the only value added t-o it, repre-

Excess Profiits Tax Act

senting an item which might be equivalent to value added in manufacture if one were processing goods, is half of one per cent, namely, $5,000. Yet if this company receives $50,000 of income through holding bonds, the tax on that under the present schedule would be 30 per cent, or $15,000. Here we have the absurd situation of a company, on the one hand, merely charging $5,000, which is all it can obtain for having rendered the service of looking after these investments, and then the government, on the other, for doing nothing at all in this particular instance, charging 30 per cent on the $50,000, or $15,000, which is three times the management fee. The two things are not comparable. All that an investment company does is to act as a conduit between the earning corporation and the ultimate recipient, so there is no service to be rendered to the company by the government. For its small service the management is entitled to only $5,000, yet the government charges $15,000.

The minister mentioned that stocks of other Canadian corporations were tax free in the hands of an investment trust company operating under a Canadian charter. That is quite so, and on investigation he will probably find that a goodly portion of the securities these investment companies hold are not bonds, but shares in other Canadian companies, because the onerous taxation of the last ten or fifteen years has driven investment companies into acquiring shares of other Canadian companies rather than buying the bonds of the government or of other corporations. We have there a situation which is virtually killing the business. If it were better known how serious the taxation burden was, I do not think a justification for most investment trusts could be made.

Topic:   EXCESS PROFITS TAX ACT
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July 11, 1940

Mr. JACKMAN:

It is ability to bear the tax that is worrying me, and I am not overlooking it. I think it is extremely onerous on a certain class of citizens, and I have already pointed out that the shareholding class in the community is a broad class indeed. When we tax the corporation we are taxing the small man, and this is done because of the idea held by some people, and the public generally, that corporations are associated with wealthy individuals. However, I think the hon. member will bear me out when I say that the typical shareholder holds only a small amount. I say, therefore, that the tax is unduly heavy, and that the whole excess profits tax as now designed does not bear out the dictum of the minister who introduced the budget, when he stated in effect that his budget should have in it, as its first principle, equality of sacrifice.

Topic:   EXCESS PROFITS TAX ACT
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