HC Deb 01 December 1949 vol 470 c1324
65. Mr. Haire

asked 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 Hall

No, 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. Haire

While 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 Hall

Quite obviously nobody likes paying tax, and we do not need a committee of investigation to establish that fact.