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Show BUY MORE BONDS-DON'T CASH THEM! With the new 20 per cent pay-a.s-you-go income tax law becoming effective the first of this month, taxpayers might be prone to cut down their purchases of war bonds, or might go as far to start caching bonds already held. If this is done it will defeat the purpose of the new method of paying income in-come taxes, and your i-ovRr.im.ent will be short of funds which are so vital to winning ih'ui war. Taxpayers and bond purchasers purch-asers should realize before cutting down bond purchases or cashing bonds, that the trtasury department is going to get the money necessary to prosecute this war, even if it has to increase he percentage of income tax deductions. For your own protection, one should remember that taxes paid will never come back to you in dollars and cents while investments in bonds will, with interest. Canada went on a withholding tax basis last year, and made it virtually complete pay-as-you-go early this year. In March, after Finance Minister J. L. Llsley announced an-nounced a step-up in deduction rates, redemptions of Canada's war savings certificates, which resemble ours, jumped to 34 per cent of the total sold against 27 per cent in February. The redemption or cashing in rate continued con-tinued to increase, in April equaled 42.4 per cent of bond sales, and then climbed to 47.8 per cent in May. In the United States redemptions have been far below Canada's percentages. Before slumping in bond purchases or cashing them in, remember this those bonds are a double-barreled way of helping to fight inflation now and will help to reestablish normal markets after the war. In the meantime they help pay for an enormously costly war. Buy more war bonds that money will come back to you. Your tax dollars won't. |