§ 71. Mr. Lewis
asked the Chancellor of the Exchequer whether he is aware that Purchase Tax is expected to yield £471 million in 1959–60; and by how much Income Tax would have to be increased to ensure this amount to the Treasury, on the basis of excluding the first £2,000 per annum of gross earnings and then instituting a progressive tax of 115W 10 per cent. on a cumulative basis on each additional £1,000 per annum of earnings.
Yes. To raise this amount on the basis suggested it would be necessary to increase the standard rate of Income Tax by 2s. 9d., with proportionate increases in the reduced rates, when all earned incomes would be taxed at 100 per cent., in respect of the slice above £5,000.