§ 8. Mr. Hastingsasked the Chancellor of the Exchequer what is the maximum marginal rate of tax in the United Kingdom as a percentage of income; and at what income it begins.
§ Mr. Diamond91.25 per cent. The point where it begins depends on the circumstances of the particular case; for example, for a married man with two children aged 11 and 16, and whose income is wholly earned, it begins at £18,951.
§ Mr. HastingsDoes not the right hon. Gentleman realise that the equivalent in West Germany is as low as 53 per cent. on an equivalent sum of a little over £20,000? Does he not think that the active encouragement of wealth, and thus saving, in West Germany, contrasted to its active discouragement under this Government, may have something to do with the relative performances of the West German and British economies?
§ Mr. DiamondI do not think that the two are related. But I should like to add to what the hon. Gentleman has said that the figure which I gave represents an average rate of tax of 60 per cent.