§ 21. Mr. Stratton Millsasked the Chancellor of the Exchequer if he will estimate the proportion of the total revenue received from the selective employment tax paid by families with an income of under £20 a week.
§ Mr. TaverneThe selective employment tax is paid by employers and its effect on consumers depends on how far it is passed on in prices. Households with incomes under £20 a week would bear on average a relatively smaller share of any increase in consumer prices due to S.E.T. than those with higher incomes.
§ Mr. MillsDespite that, is it not a fact that S.E.T., which is passed on, hits hardest at housing and the retail trade which, for the poorer members of the community, represents a greater proportion of their average weekly income? Will the hon. and learned Gentleman look at this matter sympathetically?
§ Mr. TaverneAs for the retail trade, we have just had the Reddaway Report, which I commend to the hon. Gentleman. As for the general effect of S.E.T., it is undoubtedly much less regressive than an equivalent amount imposed by way of purchase tax.
§ Mr. McNamaraHas my hon. and learned Friend made any estimate of what 188 would be the effect of a value added tax on similar income groups?
§ Mr. TaverneV.A.T. would certainly be more regressive than S.E.T.