HC Deb 24 May 1909 vol 5 cc828-9
Mr. FELL

asked the Prime Minister if he can state what evidence he has that only 1,100,000 persons in the United Kingdom contribute to the income tax; and if he includes in this number all those persons who receive dividends from companies from which the tax is deducted but who make no returns for income tax?

The PRIME MINISTER

The figures are based on the Estimates given by Sir Henry Primrose, Mr. Bowley, and Mr. Chiozza Money, M.P., before the Select Committee. They include those persons receiving dividends from companies whose total income exceeds£160 per annum.

Mr. FELL

Are there any records in existence by which the numbers of income taxpayers may be estimated beyond the merest estimate, and does not the right hon. Gentleman consider that the numbers are very much larger than the numbers stated?

The PRIME MINISTER

These are the opinions of very great experts, and I must refer the hon. Member to their evidence.

Mr. FELL

asked the Prime Minister if lie will present to the House the particulars of the figures which prove that 9½d. is the average rate of the income tax paid last year by the people who contribute to the tax, that 10¾d. will be the average rate when the income tax is levied at Is. 2d. in the£,and 11£. when the super-tax of 6d. is added?

The PRIME MINISTER

The figure of 9½d. is arrived at by dividing the total yield of the tax by the aggregate income of taxable persons coming under review by the Commissioners of Inland Revenue. The other figures are obtained by multiplying the figure of 9½d. by the estimated yield in a full year of the tax after the proposed alterations have been made, excluding and including the super-tax, and dividing by its estimated yield on the existing basis.

Mr. FELL

Is not it a fact that these figures which have been quoted by the Chancellor of the Exchequer depend entirely on the number of the income tax taxpayers being approximately accurate, and that this number is an estimate?

The PRIME MINISTER

Yes. Necessarily they depend on an estimate. It is the best estimate which we can secure.