§ 1. Mr. Horamasked the Chancellor of the Exchequer if he will give total taxes as a percentage of original income plus cash benefits for a two adult/two child family with earnings of £1,500 a year, £2,000 a year and £4,500 a year.
§ The Chief Secretary to the Treasury (Mr. Patrick Jenkin)The most recent family expenditure survey shows that total taxes paid by such a family in 1971 amounted to around 32–33 per cent. of original income plus cash benefits at each of the three levels of earnings. The value of the cash benefits however falls—both absolutely and relatively—as the level of earnings increases.
§ Mr. HoramDoes not that show how unprogressive our present system of taxation is? In the light of the Government's appeal for fairness, does not the Chief Secretary think that the onus is on the Government to do something radical about it very soon?
§ Mr. JenkinThe answer shows that in this medium range of incomes the total weight of taxation, both direct and indirect and including all cash benefits, is roughly of the same level. But, of course, it is based on the 1971 family expenditure survey figures and there have been considerable changes since then. Also, the figures encompass a very considerable range of incomes around each average and therefore the figures should be treated with a good deal of caution.