HC Deb 04 May 1914 vol 62 cc88-9

A man with £3,000 would pay on £500. He pays 5d. on the £500, not on the £3,000.

Mr. W. THORNE

Put it up a bit.

Mr. LLOYD GEORGE

I will show how it actually works. It is very difficult for anyone to calculate straight away what is the meaning of a proposal of that kind, but I will give the actual additions to the normal Income Tax at each stage, or at any stage about which any hon. Member would like to inquire. First, a man with £3,001 would pay, in addition to his ordinary Income Tax, 8d. in the £. It does not look as formidable as it did when I gave the scale.

Mr. WORTHINGTON EVANS

Is that on the total income?

Mr. LLOYD GEORGE

Yes, I am converting it now into what he is actually going to pay.

A £3,500 man would pay 1.7d., in addition to his ordinary Income Tax.

  • A £4,000 man would pay 2.4d.
  • A £5,000 man would pay 3.7d.
  • A £6,000 man would pay 4.9d.
  • A £7,000 man would pay 6.1d.
  • An £8,000 man would be 7.2d.
  • A £9,000 man would pay 8.2d.
  • And a £10,000 man would pay 8.9d.
I can go further if anybody specially wants me.

Mr. W. THORNE

What does the £100,000 man pay?

Mr. F. HALL (Dulwich)

Go up to the top price.

Mr. HOUSTON

I want to ask what the £100,000 would pay?

Mr. LLOYD GEORGE

The hon. Gentleman would be let off with 15.3d.

Mr. JOYNSON-HICKS

May I ask the right hon. Gentleman whether these figures he has given would be the percentage on the whole incomes without regard to the exemptions?

6.0 P.M.

Mr. LLOYD GEORGE

I thought I had made it clear. It is the addition which the payee of Super-tax would pay to the ordinary tax of 1s. 4d. It is in substitution of the old Super-tax. First of of all, I gave the scale. I know how difficult it is to work out a scale like that at once, and, therefore, I have worked it out in actual figures, and these are the actual rates of payment over and above the ordinary 1s. 4d. Income Tax. It is in substitution for the present Super-tax.

Lord HUGH CECIL

Can the right hon. Gentleman say what is the maximum tax which anybody in the world may have to pay?

Mr. LLOYD GEORGE

Not in the world, but in this country it would be 2s. 7.3d., and that is for an income of £100,000. The total yield of that in a full year would be £7,770,000. This year I hope to get £2,500,000 out of it, and in the first full year £4,500,000.

Mr. CHAMBERLAIN

Then I take it the total yield of the new Super-tax in a full year would be £7,770,000?

Mr. LLOYD GEORGE

Yes.

Mr. CHAMBERLAIN

And you expect £2,500,000 in the first year?

Mr. LLOYD GEORGE

Yes, that is what I expect to get in addition to the old tax this year. I expect £2,500,000 this year, and next year £5,500,000, including arrears.