HC Deb 12 November 1970 vol 806 cc249-50W
Mr. William Price

asked the Chancellor of the Exchequer how much less income tax will be paid, as a result of the 6d. cut, in a full year by a man with two children earning £1,000, £2,000, £3,000, £5,000, £10,000, £20,000, and £50,000, respectively.

Mr. Patrick Jenkin

Assuming that the man is married with two children under 11 and that in addition to his earnings family allowance is drawn for one child (except at earnings of £10,000, £20,000 and £50,000, where it is assumed that the allowance would be renounced) the annual reductions in income tax will be £4 0s. 7d., £23 9s. 6d., £42 18s. 4d., £84 14s. 0d., £193 17s. 6d., £443 17s. 6d., and £1,193 17s. 6d. respectively.

Mr. Barnett

asked the Chancellor of the Exchequer what estimate he has made of the proportionate loss of revenue from his proposal to reduce the standard rate of income tax by 6d. applicable to earned incomes as compared to investment income.

Mr. Patrick Jenkin

No useful estimate can be made as the result would depend on the assumptions made as to allocation of allowances between earned and investment income.

Mr. Barnett

asked the Chancellor of the Exchequer what estimate he has made of the proportionate loss of revenue from his proposal to reduce the standard rate of income tax by 6d. applicable to the various ranges of incomes.

Mr. Patrick Jenkin

The reduction in tax is approximately 6 per cent. of the income tax paid over all ranges of income.

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