§ 90. Sir T. Beamish
asked the Chancellor of the Exchequer if he will publish in the OFFICIAL REPORT a table based on information he has from international organisations showing taxation in the United Kingdom in 1965 as a percentage of national output, at prices exclusive of subsidies and taxes on expenditure, showing taxes on incomes, taxes on expenditure including rates and social security contributions separately in comparison with the United States of America and the six members of the European Economic Community alongside similar figures for 1964; and if he will give an estimate of similar figures for 1966.
§ Mr. Diamond
I give below a table showing the available information for 1964 and 1965. I regret that I cannot give estimates for 1966.
would be the equivalent of £2,000 then; and what in terms of money value when Surtax was introduced would be the equivalent of today's £2,000.
§ Mr. Diamond
The starting point for Surtax (then supertax) became £2,000 in 123W 1920–21. The estimated equivalent values (measuring the change in the value of money by using the cost of living index until 1938 and the consumer price index since then) are as follows:—
Today's value of £2,000 in 1920 Value in 1920 of today's £2,000 £4,270 £935
These figures are not strictly comparable because total income for Surtax is now computed on a different basis from that applicable in 1920; in particular there are special Surtax reliefs for earned income the effect of which is that Surtax is not payable on earned income until it exceeds £5,000.