HC Deb 15 February 1922 vol 150 cc1003-5
46. Mr. WISE

asked the Prime Minister if the Income Tax has been reduced in Germany; and if so, to what extent?

Mr. YOUNG

Yes, Sir. I am circulating in the OFFICIAL REPORT a table comparing the new and old rates of tax. I understand that the purpose of the amendment was to adapt the scale of abatements and graduation to the depreciation of the mark. The internal purchasing power of the mark has fallen by over 40 per cent. since last March when the old scale was adopted, and its external purchasing power to an even greater extent.

Sir W. DAVISON

What is the Income Tax now payable in Germany in equivalent British currency?

Mr. YOUNG

I believe the information that I am circulating in the OFFICIAL REPORT will enable the hon. Gentleman to ascertain that.

Mr. ARTHUR MICHAEL SAMUEL

Does the hon. Gentleman say in his report what is the amount levied and the amount collected?

Mr. YOUNG

In Germany? That is not included in the information I am circulating, and I am afraid that my means of information do not allow me to give it.

Mr. WISE

Could not the Reparations Committee have some control over the reduction of the German Income Tax?

Mr. YOUNG

That, of course, is a question of high policy; as I understand it, under the Peace Treaty they have no such control.

The following is the table:

Principal Abatements. Deducted from tax payable. Deducted from tax payable.
Marks. Marks.
For taxpayer 120 240
For wife 120 240
For each child under age 180 360
For each dependant 180 360
For expenses of occupation (earned incomes only) 180 540
The abatement are subject to reduction for larger incomes, and cease altogether for incomes above 100,000 under the old law for those above 200,000 under the new.
It will be observed that tax commences to be paid at a much lower scale of income than in this country.
Forward to