Tax Cut

Saskatchewan's Socialist government achieved a tax reduction this week. It eliminated the 2% sales tax (levied for educational purposes) on groceries, fruit, vegetables, soft drinks, candies, restaurant meals. The tax will still apply to such luxuries as whiskey and beer. The reason for the reduction: revenue from other sources (liquor sales, farm income) was way up.

The tax reduction, said Provincial Treasurer Clarence Fines, would save the people $2,000,000 a year. But the day after the sales tax was trimmed, a new $5 per-person-per-year tax went into effect. Because it would finance a province-wide "free" hospitalization plan beginning next Jan. 1, it was a tax most Saskatchewaners would not mind paying.

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