§ 51. Mr. Gallacherasked the Chancellor of the Exchequer whether he is aware that whereas single persons earning only £no per annum are free of Income Tax, the same persons, if they earn an additional £ by means of working overtime, have to pay £7 10s., or three-quarters of their overtime earnings for the year, in Income Tax; and whether, in view of the great hardship this constitutes to a large number of poorly paid people, he will reconsider the Income Tax scales in the lower range of incomes?
§ Sir K. WoodI am aware of the case to which the hon. Member refers. Where an exemption limit is provided, relief designed to mitigate the full burden of the tax is given in those cases where the income is slightly in excess of the margin. In weighing, however, the burden of the tax in such cases, regard must be had not to the excess of the income over the margin, but to the individual's total income.
§ Mr. GallacherIn view of the havoc played with overtime money earned by the workers, will the Minister not follow the line taken by the Assistance Board in connection with the means test and exempt overtime money from inclusion in the income? [Hon. Members: "No."] Why not? It is robbery.