§ 65. Mr. Haireasked the Chancellor of the Exchequer if he will now set up a committee to investigate to what extent the adoption of the Pay As You Earn system has had disincentive effects in each industry.
§ Mr. Glenvil HallNo, Sir. I would remind my hon. Friend of the very substantial reductions in tax under P.A.Y.E. made in the 1948 Budget when the earned income relief was increased to one-fifth and the band of income chargeable at the 6s. rate was extended to £200.
§ Mr. HaireWhile appreciating the reductions which my right hon. and learned Friend the Chancellor of the Exchequer made, may I ask my right hon. Friend if he is aware that many people in the country, including trade unionists, claim that there is a disincentive effect, particularly as regards bonus and overtime rates, and would it not be desirable to establish the facts?
§ Mr. Glenvil HallQuite obviously nobody likes paying tax, and we do not need a committee of investigation to establish that fact.