§ 33. Mr. Kenneth Bakerasked the Chancellor of the Exchequer what study he has made of the proposals recently published by the United States Treasury to reform the entire federal United States tax system, a copy of which has been sent to him; and whether he will consider introducing such a comprehensive reform in this country.
§ Mr. DiamondI have seen reports of these proposals. When I have received full details I will certainly consider to what extent they are relevant to this country.
§ Mr. BakerWhen the Chief Secretary is examining these proposals will be appreciate, first, that they introduce the important principle that no American taxpayer shall pay more than 50 per cent. of his income in taxation and, secondly, that these reforms will be debated in the open by a Congressional committee? Would not the right hon. Gentleman agree that that is the right way to introduce tax reforms, rather than the system which we adopt?
§ Mr. DiamondThere is, as usual, a great deal in what the hon. Gentleman says. He will recollect, however, that a major tax reform was introduced in this country in a similar way by having a White Paper published and considerable discussion taking place in advance of legislation?