New Clause. — (Repeal of s. 36 of 8 and 9 Geo. V, c. 15.)

Part of Orders of the Day — Finance Bill. – in the House of Commons on 8th July 1924.

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It is probably my fault, but I cannot possibly follow the hon. Gentleman who has just sat down. I think there is a certain amount of confusion. Whether we pay Income Tax or Super-tax, it comes to the same thing. I think if we look upon it from the point of view that Super-tax is merely an additional Income Tax, we get the right point of view. At present we pay Income Tax up to£2,000 a year at 4s. 6d. in the £ and from that point we have a graduated Income Tax which we call Super-tax. I wish the word were abolished. If we had instead a graduated Income Tax, I think the Exchequer would not suffer and the general public would certainly understand it. Income Tax payers are paying a bigger sum than appears in many returns. I have every sympathy with those who have endeavoured to reduce the Income Tax. I moved to reduce it by 6d. on the Budget Resolution, but the Chancellor could not see his way to accept it. I wish he had. But I have very little sympathy when we come to deal with Super-tax. Those who have to pay Income Tax should not be unduly assessed, but I fail to see that there is any advantage to be gained from the Clause. So far as I understand it, what is proposed is that the sum that is paid in Income Tax shall be deducted from the total amount when it comes to assessment for Super-tax. Surely you are going to give a certain section of the taxpayers an advantage to which they are not entitled. I fail to see why we should be called upon to support this Clause. There are many others on the Paper which appeal to me very much more than this. There are two or three that I shall move myself. I hope the Chancellor may be persuaded to give us something. I am amazed when he tells us this would cast the colossal sum of£20,000,000. That in itself is sufficient to destroy any hope of its being accepted, and I hope that it will be withdrawn.