HC Deb 26 November 1968 vol 774 cc276-7
9. Mr. Kenneth Baker

asked the Chancellor of the Exchequer what he estimates to be the cost of raising the starting level of Surtax on earned incomes to£7,000 per annum and to£10,000 per annum.

Mr. Harold Lever

About£25 million and£45 million, respectively, if the result was achieved by increasing the special earnings allowance for Surtax.

Mr. Baker

Does the Financial Secretary recall the speech which he made two weekends ago about the need for incentives in our tax system? Would he not agree that those British executives who receive earned incomes of between£5,000 and£10,000 per annum are the most highly taxed in the world?

Mr. Lever

I shall reflect upon what the hon. Gentleman has said.

Mr. Heifer

Will my hon. Friend take into consideration the views of hon. Members on this side who would strongly oppose any suggestion that there should be so-called incentives in that direction? If these people are the most highly taxed in the world, as they are making the highest incomes, is there anything wrong in that?

Mr. Lever

I am sure that my right hon. Friend will reflect upon what my hon. Friend has said.