§ 13. Dr. Summerskillasked the Chancellor of the Exchequer whether he will seek to abolish the joint assessment of a husband and wife for Surtax purposes.
§ Mr. DiamondNo, Sir. I share the views of the Royal Commission in favour of the present system.
§ Dr. SummerskillWould my right hon. Friend not agree that if the joint assessment were abolished, there would be a financial incentive to married women to return to medicine, teaching, scientific research and other professions where the Government urgently need them?
§ Mr. DiamondYes, I take the view that there is a very considerable incentive as there is. If my hon. Friend will work out the figures, she will see that it is very substantial indeed.
§ Mr. Iain MacleodWould the Chief Secretary look at this matter again? It is a matter of considerable concern to those who wish to see married women come back into employment. Would the right hon. Gentleman agree that the Royal Commission's view is now perhaps out of date, and that we are out of line with every comparable country in our treatment of man and wife in this regard?
§ Mr. DiamondI share the concern of the right hon. Gentleman. This is a matter of anxiety, and the Government are anxious that married women should come back to work and, where appropriate, take part in their professional lives or whatever they are able to do. However, I am grateful to the right hon. Gentleman for raising this matter because it enables me to say that there is wide misunderstanding of the situation. For Income Tax purposes the wife pays the same Income Tax on her earnings as if she were a single woman. This is not generally appreciated.