* * * Taxing the " Co-op."
The co-operative movement has been, and is, a social and educational force of great value to the community. But it is no longer necessary, nor is it desirable, to encourage the co-operative stores by exempting them from taxation to which . their commercial competitors are subject. Mr. Raeburn's Committee recommends, as did the Royal Commission of 1920, that the societies should henceforth pay income-tax on trading profits put to reserve. The so-called dividend or " divi " on pur- chases, which is, of course, no dividend at all, but simply a deferred discount, remains untouched. The recommen- dation is obviously just and the societies would be well advised to accept it. Their chief rivals, the multiple-shop companies, have long complained that, while their undis- tributed income was subject to tax, the co-operative stores could accumulate large reserves free of tax and thus compete on unfair terms. Unless the co-operative movement is to be given preferential treatment by reason of its social value there is no good case for continued exemption. And any claim to that is largely forfeited by the movement's association with a particular political party. * * * *
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