Oral Answers to Questions — Unemployment. – in the House of Commons at on 14 September 1931.
Mr Philip Oliver
, Manchester, Blackley
asked the Chancellor of the exchequer his estimates of the amount which will be payable by persons with annual incomes of £5,000, £10,000, £25,000, and £50,000, respectively, in Income Tax, Surtax, and insurance to cover Estate Duty in the year 1932, if the taxpayer derives all his income from investments and if the taxpayer derives half his income from investments and half from earnings, and basing the estimate with regard to insurance on the assumption contained in Section III, pages 79 and following, of the report of the Colwyn Committee on National Debt and Taxation?
Mr Philip Snowden
, Colne Valley
I will circulate in the OFFICIAL REPORT a
| A.—If the, taxpayer derives all his income from investments. | |||||
| Total Income. | Equivalent Capital. | Income Tax. | Sur-tax. | Net Insurance Payment to provide for Estate Duty. | Total. |
| £ | £ | £ | £ | £ | £ |
| 5,000 | 100,000 | 1,158 | 337 | 798 | 2,293 |
| 10,000 | 200,000 | 2,408 | 1,519 | 2,281 | 6,208 |
| 25,000 | 500,000 | 6,158 | 6,469 | 8,479 | 21,106 |
| 50,000 | 1,000,000 | 12,408 | 15,957 | 25,140 | 53,505 |
| B.—If the taxpayer derives half his income from investments and half from earnings. | |||||
| 5,000 | 50,000 | 1,083 | 337 | 267 | 1,687 |
| 10,000 | 100,000 | 2,333 | 1,519 | 790 | 4,642 |
| 25,000 | 250,000 | 6,083 | 6,469 | 3,000 | 15,552 |
| 50,000 | 500,000 | 12,333 | 15,957 | 7,958 | 36,248 |
Miss Arabella Lawrence
, East Ham North
asked the Chancellor of the exchequer whether he will give, separately, the estimated effect of each of the proposed changes in Allowances (a) to (f), set out on page 6 of the revised Financial Statement?
Mr Philip Snowden
, Colne Valley
The effect of the increase in the earned income allowance and the reductions in personal allowances—items (a) to (e) in the Financial Statement—is a net gain of about £14,500,000 in a full year. The effect of item (f) is a gain of about £13,000,000 in a full year. I regret I am unable to furnish separate estimates for items (a) to (e). These allowances are interlocked and the effect of a change in one of them cannot be computed without taking into account the changes in the others. table showing, for the incomes specified, the Income Tax and Surtax payable under the Budget proposals, together with the net annual payment required to meet the Estate Duty on death. The table is compiled on the assumptions, and is subject to the limitations, mentioned in the report of the Colwyn Committee.
Mr Philip Oliver
, Manchester, Blackley
Can the right hon. Gentleman give us the tables?
Mr Philip Snowden
, Colne Valley
I cannot go through the full table; it is in tabulated form, but I can give a few figures. A taxpayer with a total income of £50,000 a year—that is the equivalent value of £1,000,000—pays altogether, on the basis of the question, £53,500.
Miss Arabella Lawrence
, East Ham North
if the effect of the allowance cannot be estimated, how can the Treasury arrive at the gross total of £51,000,000 increase in the yield of the Income Tax?
Mr Philip Snowden
, Colne Valley
The total effect can be well estimated. These matters are so interlocked that you cannot allocate them within the various categories mentioned in the question.
Mr Fielding West
, Kensington North
Can the right hon. Gentleman say how the Surtax payers live on their losses?
Mr Hugh Dalton
, Camberwell Peckham
asked the Chancellor of the exchequer if he will issue a white paper showing in tabular form the changes in the effective rates of Income Tax and Surtax on a series of representative incomes as a result of his new Budget proposals?
Mr Philip Snowden
, Colne Valley
I think it would be useful if there were available for Members a table showing the effective rates of income taxation in each of the last three years, and I will accordingly have a white paper prepared.
Mr Hugh Dalton
, Camberwell Peckham
May I ask when it will be available, in view of the fact that the Budget Resolutions are to be discussed this week?
Mr Philip Snowden
, Colne Valley
I cannot say definitely.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
A document issued by the Government laying out its policy, or proposed policy, on a topic of current concern.Although a white paper may occasion consultation as to the details of new legislation, it does signify a clear intention on the part of a government to pass new law. This is a contrast with green papers, which are issued less frequently, are more open-ended and may merely propose a strategy to be implemented in the details of other legislation.
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