By Richard Whiting
It is a political heritage of Labour's use of the tax procedure from 1906 to 1979; an epilogue brings the tale as much as the current, surveying New Labour's tax rules and dilemmas. Richard Whiting's lucid and readable research examines how Labour used taxation to extra its political goals: to fund welfare, deal with the economic system, advertise equity and attain larger equality. This research sheds new gentle on Labour's heritage, and is a important contribution to knowing either the tax constitution and the politics of twentieth-century Britain extra often.
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Extra info for The Labour Party and Taxation: Party Identity and Political Purpose in Twentieth-Century Britain
Example text
143±82 at pp. 179±80. I have explored this further in `Taxation and the Working Class, 1915±24', The Historical Journal, 33(4) (1990), pp. 895±916. Philip Snowden, Who is to Pay for the War? (London, 1915), pp. 6 and 13. '40 The workers had to respond to a quarterly assessment from the tax authorities rather than having their tax deducted by their employer, as was to be the system when wages were taxed in the Second World War. 41 The feature of the tax to which Carter devoted some attention was the variability between districts of the allowances granted for tools and clothing which were regarded as necessities of working-class life, allowances for dependants other than the taxpayer's own children and some exemption of small amounts of unearned income.
2576, p. 123 (Charles Edwards, South Wales Miners' Federation). , evidence, part 1, qs. 9214±15, p. 443. , evidence, part 1, q. 3997, p. 192. , evidence, part 1, q. 4007, p. 193. '48 It was suggested that Hopkins was giving evidence not as a Revenue of®cial but as a member of the middle classes. Snowden's views were broadly similar to those of the Inland Revenue. The working class did not deserve further relief from tax beyond that which had already been provided by the allowances for wives and children.
To revive the viability of the tax Labour decided to include undistributed company pro®ts in the tax. This was a signi®cant change. One aspect which had made the levy easier to defend had been the fact that corporately held assets were exempt, whether of trade unions, companies or charities. This had meant that the most dynamic area of saving would have been untouched by the levy. The Conservative case had little purchase in these circumstances on economic as opposed to political criteria. Indeed, Labour had shown little interest in taxing company savings at all, and had abolished the corporation tax in 1924.
