§ 47. Sir William Davisonasked the Chancellor of the Exchequer what would be the estimated yield to the revenue if Surtax were levied on incomes in excess of £1,500 a year instead of on incomes in excess of £2,000 a year as at present; and of the revenue so obtained, what would be the estimated sum that would be payable by present Surtax payers, and what by new Surtax payers with incomes of between £1,500 and £2,000 a year?
§ The Chancellor of the Exchequer (Sir John Simon)The Surtax is graduated by way of charging a higher rate on each slice of income in excess of £2,000 and the yield from lowering the limit to £1,500 would depend upon the graduation that would apply in respect of the slices of incomes in excess of £1,500. The question of the rates determining this graduation is a matter for next year's Finance Bill and no estimate of yield can be given until the rates have been determined.
§ Sir W. DavisonIs it not a fact that four-fifths of any increase of the kind suggested in the Question would be borne by existing Surtax payers who have never yet had any rebate on the additional taxation imposed in 1931? Is it not a fact that they were the only class of taxpayer who did not have it?
§ Sir J. SimonThe fact still remains that the charge really depends on the graduation of the scale above £1,500.