§ 21. Mr. Marksasked the Chancellor of the Exchequer what estimate he has made of the loss of revenue resulting from a cut of 6d. in the standard rate of Income Tax and of the effect on the income of married men with two young children earning £10 per week, £20 per week, £40 per week, and £100 per week and receiving £100 per week unearned income.
§ Mr. DiamondThe loss of revenue would be £141 million for a full year; the cases quoted would benefit, respectively, by nil, 3s. 6d., £20 8s., £84 10s. and £109 19s. annually.
§ Mr. MarksI am grateful to my right hon. Friend for those figures. Would not he agree that any reduction in Income Tax benefits most those who have high incomes, not necessarily earned, and benefits least those who work for average and below-average wages? When considering changes in direct taxation, will priority be given to these workers, to their incentives and also to groups such as widows who work to supplement their pensions yet who are taxed? Is he aware that they greatly resent this tax?
§ Mr. SpeakerOrder. Questions, however worthy, must be brief.
§ Mr. DiamondThe short answer to the first point made by my hon. Friend is, "Yes". What my hon. Friend says is, of course, right, and that is why one must take other matters into account when these matters are considered.