§ 57. Mr. Boyd-Carpenterasked the Chancellor of the Duchy of Lancaster what are the rates of Income Tax and Surtax imposed upon inhabitants of the British zone in Germany.
§ Mr. J. HyndThe rates of personal Income Tax vary between total exemption for the lowest incomes and 95 per cent. for the highest range of income; but, owing to the existence of different taxes for wages, personal income, corporation income, and excess profits, and to a complicated system of allowances and deductions, I am afraid that it is impossible to give a comprehensive answer to the Question. The following examples will, however, give a broad indication of the incidence of these taxes:
A married couple, with two children, with wages of 2,000 marks a year pay no tax. With wages of between 5,000 and 20,000 marks a year, they will pay from 24 per cent to 64 per cent. in tax. A personal income of 600 marks a year is free of tax. On incomes between 2,000 marks and 100,000 marks a year, tax-ranges from 20 per cent. to 88 per cent. The aggregate sum of all these taxes, however, including corporation and 30 Excess Profits Tax, may not exceed 90 per cent. of the total net income.
§ Mr. DraysonAs 2,000 marks are apparently worth only 40 cigarettes, is it not very ungenerous that inhabitants of the British zone should pay Income Tax-on so small an income?