Costs of Taxation in the Mining Industry

THE subject of taxes appears to engage our attention altogether too lightly. At least it would seem that, notwithstanding the increase in the cost of government, and its concomitant increased taxation, little constructive work is being done with a view to solving the problem of increased taxes. I believe that the inattention of the public generally to the subject of increased taxation is due largely to the fact that shareholders are not advised of the amount of taxes paid by industry. Were companies to advise their shareholders the amount of monies paid or payable out of each year's earnings for taxes in one form or another, and were such amounts compared with the amounts available for distribution to shareholders, the effect would be a general demand for more equitable taxation methods. While I am not unmindful of the burdens and inequities in taxation confronting industry generally, I believe that the mining industry in this Province does not fully appreciate the burden represented by the costs of taxation. My reason for this belief is based partly upon1the fact that no serious effort has so far been made to devise some means By which the mining industry in British Columbia might protect itself against the ever-increasing burden of taxation. In addition to this fact the widely diverse nature of mining in British Columbia makes the accumulation of comparable data a problem which, so far as I can ascertain, has never been attempted in a manner which would be authoritative. It should not be necessary to cite the effects of this burden upon any one mining company or upon any branch of the mining industry, such as coal mining, placer mining, base-metal mining, or the precious-metal mines. In my opinion, the operation of our mines by large corporations is conducive to the payment of taxes with much less protest than would be the case were the taxes being taken out of the earnings of just a few partners or a very few shareholders. We appear to be too unmindful of the taxes, paid by mining companies, of a kind that are not so prominently brought to our attention as are the taxes which are calculated upon the taxable income of the company at the end of its fiscal year. British Columbian mining companies pay many other taxes besides those which are calculated upon taxable income. Among these are school taxes, property taxes, gasoline taxes, mineral taxes, coal royalty, to say nothing of fuel-oil tax, sales tax, and excise taxes.