WEDNESDAY, APRIL 25, 1984
3
TO THE OPINION THAT $23 300 A MONTH WAS NOT A PARTICULARLY HIGH INCOME+, SIR JOHN SAID, + IT IS A MILD REJOINDER THAT OPINIONS FROM A PUBLIC HOUSING ESTATE ARE LIKELY TO BE DIFFERENT. NOR CAN I ACCEPT A DEFINITION OF THE SANDWICH CLASS AS BEING ANYONE WHO DOES NOT WANT TO PAY MORE TAX.
QUOTING FROM HIS OWN SPEECH MADE A YEAR AGO, SIR JOHN SAID, +THE REAL SANDWICH CLASS' ARE THOSE MIDDLE INCOME HOUSEHOLDS WHO EITHER PURCHASED THE IR OWN HOMES IN RECENT YEARS OR ARE PAYING THE FAIR MARKET RENT OR SOMETHING CLOSE TO IT FOR PRIVATE RENTED ACCOMMODATION.
+THE NUMBERS INVOLVED ARE RELATIVELY SMALL, SOMEWHERE BETWEEN FOUR PER CENT AND 10 PER CENT OF ALL HOUSEHOLDS, BUT PROBABLY NEARER TO FOUR PER CENT.+
NOTING THAT THE GOVERNMENT WAS AWARE OF THIS SANDWICHED CLASS, SIR JOHN SAID THAT FOUR PER CENT OF HOUSEHOLDS IS 54 600 AND 10 PER CENT IS 132 500.
+OUT OF A WORKING POPULATION OF ABOUT 2.5 MILLION ONLY SOME 18 500 MEN AND WOMEN WILL PAY SALARIES TAX OF 17 PER CENT, A VERY LOW LEVEL BY MOST INTERNATIONAL COMPARISONS, HE SAID.
+THE VAST MAJORITY IN HONG KONG DOES NOT AND WILL NOT EARN A SALARY ABOVE $18 650 PER MONTH. THIS SEEMS TO ME A NOT UNREASONABLE LEVEL ABOVE WHICH A MODERATE INCREASE SHOULD BE BEARABLE.
+NOR AM I MORE THAN SYMPATHETIC TO A BACHELOR EARNING $10 400 PER MONTH, OUT OF WHICH HE WILL BE ASKED TO PAY ANOTHER $40, SIR JOHN POINTED OUT.
HE SAID THAT HIS CONCERN HAD TO FOCUS AT LEAST EQUALLY ON THE VAST MAJORITY WHICH FORMS THE LOWER INCOME EARNERS.
+I ACCEPT THAT, AS A RESULT OF INFLATION CREEP PLUS UNCHANGED THRESHOLDS AND ALLOWANCES FOR TWO YEARS, MORE PEOPLE ARE FALLING INTO THE TAX NET AT THE LOWER PAY LEVELS AND THAT THOSE IN THE TAX NET ALREADY ARE PAYING MORE IN REAL TERMS.
+ I RECOGNISED THIS PROBLEM IN MY BUDGET SPEECH AND I HAVE PROMISED TO DO WHAT I CAN NEXT YEAR, SUBJECT ALWAYS TO THE BUDGETARY POSITION AT THAT TIME,+ HE STATED.
HE EXPLAINED THAT THIS CONSIDERATION WAS A CONSTRAINT THIS YEAR AS CONCESSIONS IN THIS AND ANALOGOUS AREAS WERE EXPENSIVE AND WOULD HAVE NECESSITATED EVEN HIGHER COMPENSATORY TAX INCREASES ELSEWHERE.
ON PROFITS TAX, SIR JOHN SAID THAT OUTSIDE THE COUNCIL, THERE HAD BEEN A DELIBERATE EXAGGERATION OF THE PROBLEMS THAT MIGHT ACCOMPANY THE PROPOSED TWO PER CENT INCREASE WITH A CHANGED AMBIT.
IT WAS USEFUL FOR NEW LEGISLATIVE PROPOSALS TO BE CRITICISED, HE SAID.
/+IF, HOWEVER,