§ 21. Sir B. Rhys Williamsasked the Chancellor of the Exchequer what is the present effective rate of income tax for a married man with two children not over 11 years of age who is earning the average weekly wage; and how this compares with his effective rate in the financial year 1970–71.
§ Mr. HigginsAbout 12.8 per cent. now compared with 14.2 per cent. for 1970–71, assuming the average wage appropriate to each year.
§ Sir B. Rhys WilliamsI congratulate the Government on the substantial drop. I suggest that it would make the collection of tax much simpler if all married men on particular rates of income paid the same amount of tax and the difference was then made good to married men with children by increasing family allowances.
§ Mr. HigginsI am grateful to my hon. Friend for his first point. I will study the second point which he raised.
§ Mr. LathamWill the hon. Gentleman bear in mind that this question concerns the average income of a married man with a wife and two children under 11 years of age. Having deduced a 1.4 per cent. improvement, so that we can make a comparison, will he say what is the percentage of increased outgoings in terms of milk, school meals, higher fares, proposed higher rents, health and prescription charges, increased food prices and the higher cost of living?
§ Mr. HigginsIf the hon. Gentleman cares to put down a Question we shall do our best to answer the point he raises.