Tax reform (1971)

Benson's balanced budget for 1969-70 would be the last until Paul Martin's budget of 1997-98.^[5] Later in 1969, he introduced his white paper on Canadian tax reform, which paved the way for:

• a capital gains tax^[6]
• a tax deduction for child care as a means of helping mothers enter the workforce^[7]
• greater use of Registered Retirement Savings Plans^[8]

The proposals were subjected to intensive debate that lasted more than a year. Those concerning the capital gains tax were severely criticized by the business community, particularly Israel Asper, who condemned the measure.^[9] The reforms were only passed after significant amendment, and even then only through the use of closure.^[1] They came into effect on January 1, 1972, as prescribed by the 1971 Canadian federal budget.^[10]

Marc Lalonde, a colleague and future Finance Minister, later said, "He was in finance at a critical time, he revolutionized the system. He launched a revolution. It was a revolution, a necessary step and a demanding task. What he did was economically justified. The basic tax structure that he put in place is still alive. No one has really touched it since."^[1]

Impact

He was also instrumental in rolling out a national medical care plan and supplementary old age pensions and played a key role in federal-provincial relations.

Benson wore a pair of new shoes on budget day in 1968, although he said, "He didn't buy them just for the budget."^[11] The following year he did not wear new shoes when delivering the budget, saying jokingly that he couldn't afford them,^[12] and in 1970 proudly displayed his worn soles on budget day.^[13]

He later served as Minister of National Defence from January to August 1972, when he retired from politics, choosing not to run in the 1972 election.

Kingston

Kingston and the Islands