Negative Income Tax (Hansard, 22 May 1969)

§ 7. Mr. Barnes
asked the Secretary of State for Employment and Productivity if she will set up an inquiry to examine the effects on work incentives of the introduction of a system of negative income tax to replace family allowances.

§ Mr. Harold Walker
No, Sir.

§ Mr. Barnes
Since the Office of Economic Opportunity in the United States is running an experiment in negative income tax at the moment to test just this point, could my hon. Friend ask the United States Government to give him as much information as possible about the progress of this experiment?

§ Mr. Walker
That is a rather different question—

§ Mr. Barnes
No, it is the same question.

§ Mr. Walker
I have noted the persistence with which my hon. Friend has pursued this with the Chancellor and the Secretary of State for Social Services, and the replies which they have given. My hon. Friend asked for a separate study of the effect of negative income tax on incentives to work. This is not practical in the circumstances without the details of tax proposals and their relationship to other social benefits being taken into account.