§ 36. Mr. PHILIP OLIVERasked the Chancellor of the Exchequer his estimates of the amount which will be payable by persons with annual incomes of £5,000, £10,000, £25,000, and £50,000, respectively, in Income Tax, Surtax, and insurance to cover Estate Duty in the year 1932, if the taxpayer derives all his income from investments and if the taxpayer derives half his income from investments and half from earnings, and basing the estimate with regard to insurance on the assumption contained in Section III, pages 79 and following, of the report of the Colwyn Committee on National Debt and Taxation?
§ The CHANCELLOR of the EXCHEQUER (Mr. Philip Snowden)I will circulate in the OFFICIAL REPORT a
| A.—If the, taxpayer derives all his income from investments. | |||||
| Total Income. | Equivalent Capital. | Income Tax. | Sur-tax. | Net Insurance Payment to provide for Estate Duty. | Total. |
| £ | £ | £ | £ | £ | £ |
| 5,000 | 100,000 | 1,158 | 337 | 798 | 2,293 |
| 10,000 | 200,000 | 2,408 | 1,519 | 2,281 | 6,208 |
| 25,000 | 500,000 | 6,158 | 6,469 | 8,479 | 21,106 |
| 50,000 | 1,000,000 | 12,408 | 15,957 | 25,140 | 53,505 |
| B.—If the taxpayer derives half his income from investments and half from earnings. | |||||
| 5,000 | 50,000 | 1,083 | 337 | 267 | 1,687 |
| 10,000 | 100,000 | 2,333 | 1,519 | 790 | 4,642 |
| 25,000 | 250,000 | 6,083 | 6,469 | 3,000 | 15,552 |
| 50,000 | 500,000 | 12,333 | 15,957 | 7,958 | 36,248 |
§ Note.—The taxpayer is assumed to be a married man, aged 45 years, with three children.
§ 37. Miss LAWRENCEasked the Chancellor of the Exchequer whether he will give, separately, the estimated effect of each of the proposed changes in Allowances (a) to (f), set out on page 6 of the revised Financial Statement?
§ Me. SNOWDENThe effect of the increase in the earned income allowance and the reductions in personal allowances—items (a) to (e) in the Financial Statement—is a net gain of about £14,500,000 in a full year. The effect of item (f) is a gain of about £13,000,000 in a full year. I regret I am unable to furnish separate estimates for items (a) to (e). These allowances are interlocked and the effect of a change in one of them cannot be computed without taking into account the changes in the others. 510 table showing, for the incomes specified, the Income Tax and Surtax payable under the Budget proposals, together with the net annual payment required to meet the Estate Duty on death. The table is compiled on the assumptions, and is subject to the limitations, mentioned in the report of the Colwyn Committee.
§ Mr. OLIVERCan the right hon. Gentleman give us the tables?
§ Mr. SNOWDENI cannot go through the full table; it is in tabulated form, but I can give a few figures. A taxpayer with a total income of £50,000 a year—that is the equivalent value of £1,000,000—pays altogether, on the basis of the question, £53,500.
§ Following is the table:
§ Miss LAWRENCEif the effect of the allowance cannot be estimated, how can the Treasury arrive at the gross total of £51,000,000 increase in the yield of the Income Tax?
§ Mr. SNOWDENThe total effect can be well estimated. These matters are so interlocked that you cannot allocate them within the various categories mentioned in the question.
§ 38. Mr. DALTONasked the Chancellor of the Exchequer if he will issue a White Paper showing in tabular form the changes in the effective rates of Income 511 Tax and Surtax on a series of representative incomes as a result of his new Budget proposals?
§ Mr. SNOWDENI think it would be useful if there were available for Members a table showing the effective rates of income taxation in each of the last three years, and I will accordingly have a White Paper prepared.
§ Mr. DALTONMay I ask when it will be available, in view of the fact that the Budget Resolutions are to be discussed this week?
§ Mr. SNOWDENI cannot say definitely.