I move:—
That the Dáil agree with the Committee in Resolution No. 1.
Resolution No. 1—Income-Tax and Sur-tax.
Will the Minister explain paragraph 2 of the Resolution? The paragraph says that surtax "shall be so charged at such rates as shall hereafter be appointed by the Oireachtas". Will the Minister give an idea of what rates of surtax will be arranged?
The Finance Bill of next year will set out in full the details of the rates that will be applied.
The Minister asks us to pass a Resolution to the effect that income-tax will be charged at the rate of 7/6 in the £, and that there shall be a surtax for the year beginning on the 6th day of April, 1941, "in respect of the income of any individual the total of which from all sources exceeds £1,500, and shall be so charged at such rates as shall hereafter be appointed by the Oireachtas". I ask the Minister to appreciate that it would be reasonable at this stage, when the House is being told of the taxes which are being imposed, that it should also be told what the present rates of surtax are, whether it is proposed to make any changes, and whether the fixing of £1,500 as a limit above which surtax will be charged is a change in the present position.
There is no change proposed here in the surtax. £1,500 remains as the income that will be subject to surtax. Certainly there may be changes, but these will be set out in detail as usual in the Finance Bill of next year. An increase in the total tax will naturally follow from the increase in the rate of income-tax which affects surtax payers. It is natural that changes that may arise from an increase in the income-tax will affect surtax payers. Except for that, there is no new proposal to increase the rate of surtax.
I ask the Minister to appreciate that we have several Resolutions here dealing with income-tax, surtax, excess surtax, corporation profits tax, excess corporation profits tax, etc. In asking the House to consider these and the general effect of them, I think it is presenting the House with a difficult blind spot if the House is told that the rates of surtax are to be changed and the House is given no idea as to what the new figures are likely to be. It is impossible to consider some of the other taxes in a proper perspective if we do not know what the surtax confronting individuals is likely to be.
Is the Minister in a position to tell the Dáil what examination, if any, has taken place with regard to the effect upon unemployment of the increased income-tax last year? From information given by one Minister, it would appear as if the number of persons coming under National Health Insurance will be down by 11,000 this year. For some years the figure had been increasing. As there are one or two classes not included in what is called unemployment insurance, the question is whether the Government will take into consideration the desirability of extending the scope and including those classes who, by reason of those increased taxes, or other causes, have been thrown out of employment or are likely to be thrown out of employment in the immediate future?
Consideration has been given to that matter, but I am not in a position just now to go into it in detail. I will be prepared to do that and I hope to answer any questions of that nature that may be addressed to me, perhaps not satisfactorily, on the Committee Stage of the Finance Bill. I know it is quite in order to ask questions of the kind. I would like, however, to tell Deputies that since I last met the House I have been doing nothing but receiving deputations. They have come to me to put forward objections to the various taxes proposed. Consequently, I had not an opportunity of considering several of the matters that were put up to me by Deputies. When we come to consider, on the Committee Stage of the Finance Bill, the matters raised by this Resolution, I will then announce the result of the consideration given to them.
Did I understand the Minister to say that the exemption point, as regards surtax, namely, £1,500, remains unchanged, and that the rates will be the same, subject——
No.
That is what I want to know. The rates are to be the same, but differences will be created by the increase in income-tax. I would be glad if the Minister would make that clear.
The exemption rate has not been changed, and it is not proposed to change it.
Have the rates at which the tax is levied been altered?
No.
The Minister is asking the House to pass a Resolution so that they may be altered, and has indicated that they will be altered. Is that not so?
That is not so. Resolution No. 1 charges the surtax for 1941-42. The Finance Bill of next year will set out in detail the rates that are to be charged. I understand it has not been the custom to go into details on the various Resolutions on this stage. I am not denying that the Deputy has the right to ask for these explanations, but I understand it has not been the practice at this stage to go into arguments for and against a particular tax. The custom, I understand, has been to do that on the Second Reading of the Finance Bill, and, more particularly, on the Committee Stage of that Bill.
A Budget has been prepared and an estimated amount of revenue has been given. The Minister must know the surtax rates that he proposes to charge. He indicated that he received a number of deputations pointing out various things to him with regard to the taxes proposed. One hopes that, in the discussions that will take place, decisions will be come to that will be helpful in making the financial machinery proposals fit as easily as possible into the general financial scheme, and thereby do as little economic harm as possible. I think it would be helpful if we could know before we reach the Finance Bill what changes it is proposed to make in the surtax rates.
There are no changes in the surtax rates.
I understood the Minister to say that the rates were going to be changed.
The surtax rates for 1940-41 are already fixed. There is no change. The rates for 1941-42 will not be fixed and will not come into operation for another year.
If there was no war, this would be the surtax Resolution?
Yes.
Question put and agreed to.