James Lorimer Ilsley (3 January 1894 – 14 January 1967) was a Canadian politician and jurist. He was minister of finance from 1940 to 1946. He was finance minister during World War II; to fund the increase in wartime expenditure, he dramatically expanded the income tax by imposing it on millions of workers and citizens.
Early life
He was born in Somerset, Nova Scotia, the son of Randel Ilsley and Catherine Caldwell. Ilsley was educated at Acadia University where he served as Editor-In-Chief of the university newspaper The Athenaeum. He then attended Dalhousie University and was admitted to the Nova Scotia bar in 1916. In 1919, he married Evelyn Smith. Ilsley then practised law in Yarmouth and Halifax, Nova Scotia until 1926.
Political career
He was elected to the House of Commons of Canada as a Liberal in the 1926 election. He survived the 1930 election that sent the Liberals into Opposition. When the Liberal Party returned to power in the 1935 election, Prime Minister William Lyon Mackenzie King brought Ilsley into Cabinet as Minister of National Revenue.
Finance minister
In 1940, he was promoted to Minister of Finance. He held that position for the duration of World War II during a period of massive expansion in expenditure due to the war effort, described as a "transformation of the Canadian tax system" by historian Colin Campbell. Under his direction, the minimum income required to pay income tax was push dramatically downward, effectively changing income tax from a "class tax" on the wealthiest 300,000 or so Canadians to a national tax.
He also led the Victory Bond campaign, brought in wage and price controls in 1941, and deal with several currency crises.