§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent the level of commencement of tax on earned income could be raised if the higher rates of taxation on non-earned and earned income were increased to compensate for the lost revenue from the raising of the lower tax paying levels.
§ Mr. Robert Sheldon, pursuant to his reply—[Official Report, 7th February 1978; Vol. 943, c. 506.]—gave the following information:
163WI am not certain what my hon. Friend has in mind, but if higher rates of tax on all incomes were increased to 100 per cent. the single person's allowance, married person's allowance, wife's earned income allowance and the age allowances for single and married persons could each be increased by about £180 at no net cost to the Exchequer. I regret that to estimate the corresponding increases in allowances, if the 100 per cent. rate of tax were confined to investment incomes liable at the higher rates, would require considerable further expenditure of time and effort.