For poorer, for poorer
A CLASS of owners long since punished are those who marry one another. Hus- band and wife can opt to be taxed jointly or separately — but only on their earned incomes. Investment income (`unearned', as it used to be called) must be taxed jointly. The principle extends to capital gains. Every taxpayer has an exemption, allowing a fixed amount of gains to pass free of tax, except that two married tax- payers must share one exemption between them. Investment income was surcharged, being taxed at 15p in the pound more than earned income, until Mr Lawson abolished the surcharge. He could finish his work by abolishing the concept. I noticed that in the economic debate at the Tory conference, a lady argued this most persuasively, to applause from the hall, from the Chancel- lor — and from the Prime Minister.
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