§ 10. Mr. Henry Clarkasked the Chancellor of the Exchequer what estimates he has made of the dis-saving which will result from the special levy on unearned incomes introduced in his recent Budget.
§ Mr. Harold LeverAs my right hon. Friend said in his speech on the Second 1017 Reading of the Finance Bill, I consider it unlikely that savings will be affected by the special charge, which of course is for 1967–68 only.
§ Mr. ClarkIs not it clear that members of the public will try to maintain their standard of living and will draw on savings, and that with this tax they must draw more heavily on their capital, as with many of the other taxes? Will not this simply add to the public's propensity to consume, which is already far too high?
§ Mr. LeverThe first part of the hon. Gentleman's assertion is highly conjectural. The latter part, that this will add to spending, seems to me to be absolutely opposed to the normal inferences drawn from this tax.
§ Mr. Stratton MillsHas the Minister considered the particular problem which will arise for shareholders in close companies, which are forced to distribute whether or not they wish to do so and may have great difficulties with this additional burden?
§ Mr. LeverThat problem has been considered. However, it does not relate to the Question on the Order Paper.