XN000022-1973-02-28 — Page 41

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Wednesday, February 28, 1973

These would be of $10,000 each with tax intervals of five per cent

rising to 25 per cent on the fifth platform and 30 per cent on net chargeable

income above $50,000.

This proposal, Mr. Haddon-Cave said, satisfied the criterion that "with

a low standard rate of tax there is no case for a slow rate of progress up to

the standard rate."

The number of platforms before the 30 per cent rate applies is

reduced from 11 to 5 and the below standard rate platforms from five to two.

"So a measure of reform would be achieved, without departing too much

from the present curve of incidence," he added.

Working Wife Allowance

Turning to the working wife allowance, the Financial Secretary said

that "the wife who cannot work should have the same benefits as the wife who

ft

can.

He proposed that the basic allowance for a wife in all cases be

increased to $10,000 and that the special extra allowance for a working wife

be cancelled.

One small effect of the new proposals, the Financial Secretary said,

was that the widow or widower with dependent children at the levels of income

where the lower income relief presently applied would be slightly worse off at

certain levels of income.

To avoid this, he proposed that the allowance for the first child be

increased from $2,000 to $3,000.

The Financial