§ 3. Mr. Haleasked the Chancellor of the Exchequer whether he is prepared to introduce provisions exempting old-age pension from Income Tax.
§ Mr. HaleWould not the Financial Secretary consider the principle of this matter? What happens is that we say to the old-age pensioner, "The Government will contribute 20 per cent. of your savings if you will be good enough to contribute, and if you survive we will take the chance of pinching 50 per cent. of it back when you get old". This really is a 1399 swindle. It is very undesirable and, as the amount involved is very small indeed, would not the hon. and learned Gentleman ask his right hon. Friend to look at it again?
§ Mr. SimonSuccessive Governments have taken the view that the right principle is to make the contributions deductible in arriving at the taxable income, and then tax the pension itself, just like any other income. It must be remembered that the retirement pension is payable without regard to the pensioner's means, and therefore is payable to millionaire and pauper alike.