§ 49. Mr. Liddallasked the Chancellor of the Exchequer whether he is aware that Excess Profits Tax, as now imposed, will penalise expansion of trade by causing it to secure less dividend on a greater effort than had previously been secured on a smaller effort; and that the results on £8,000,000 of assets employed by the Birmingham Small Arms Company, prove that Excess Profits Tax enforced rigidly, discourages incentive to work harder to produce more, and prevents a concern making reserves for after-war trading; and will he devise a suitable readjustment?
§ Sir J. SimonI am unable to accept my hon. Friend's suggestion that the Excess Profits Tax can properly be regarded as penalising trade. As regards the latter part of his question, he will appreciate that it would not be proper for me to discuss the liability to taxation of a particular taxpayer.