Clause 1. — ;(Charge of Income Tax for 1955–56 and Surtax Rates for 1954–55.)

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 27th April 1955.

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Photo of Mr Gilbert Mitchison Mr Gilbert Mitchison , Kettering 12:00 am, 27th April 1955

The hon. Gentleman has completely misunderstood what I have been saying. He must know that the Opposition has no power to remit the same amount by other means and to other people, in a better way. We must obviously accept the remission; there can be no question about that, But we are entitled to say, and we do say, that if we had had this amount of money to remit we would not have remitted£42 million of it to limited companies, and we would not have remitted such a high proportion of it to the higher range of taxpayers.

On the contrary, we would have used every effort to take more people out of the Income Tax scale and make such reductions in rate as we could at the bottom of the scale, and not in the present form, which means that the greater part of those reductions go to persons at the top of the scale, who thus get a wholly disproportionate benefit.