§ Mr. Roperasked the Chancellor of the Exchequer (1) at what combination of earned and unearned income will there be the maximum reduction of the incidence of tax on unearned income as a result of the proposed increase of earned income relief for incomes of£4,005 in the case of a married man with two children under 11 years of age;
(2) what are the ranges of combinations of earned and unearned incomes for a married couple with two children under 11 years of age for which the increase of earned income relief will, by lowering the top rates at which unearned income is taxed, lead to a reduction in the tax paid on unearned income.
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§ Mr. Patrick JenkinAll surtax-payers earning more than£5,001 in 1971–72 will pay less surtax as a result of the proposed increase in earned income relief. Since surtax is chargeable on a person's total income it cannot be apportioned between the separate components of his income; but if the taxpayer's investment income is regarded as the top slice of his total income, the reduction in the surtax on it will depend on the amount of the earned income, the amount of investment income and the extent to which the latter is brought into a lower surtax bracket as a result of the increased earned income relief.