§ Mr. Kenneth Clarkeasked the Chancellor of the Exchequer what is the maximum marginal rate of direct taxation in the United Kingdom and, from information available from international sources, how this compares with the equivalent position in the European Economic Community countries.
§ Mr. Patrick JenkinThe information is given in the table below. The rate quoted for a Community country is the rate in force on 1st January, 1971; the rate for the United Kingdom is that applicable to 1971–72 (on the assumption that the 1971–72 surtax rates are the same as for 1970–71).
Country Maximum Marginal Rate Per cent. Belgium … … … 66.0 France … … … 64.9 Germany … … … 54.6 Italy … … … 82.4 Luxembourg … … … 57.0 Netherlands … … … 72.6 United Kingdom … … … 88.75
§ Mr. Knoxasked the Chancellor of the Exchequer, from information available from international sources, what percentage was direct taxation of total taxation in the member countries of the European Economic Community in 1958, 1962, 1966 and 1970; and what are the equivalent figures for the United Kingdom.
§ Mr. HigginsThe information in the table below is taken from the latest returns made to O.E.C.D. Figures for 185W 1970 are not yet available from these returns.
Percentages of total receipts* 1958 1962 1966 1969 Belgium: Taxes on income … 30.1* 29.8 28.8 31.9 Social security contributions … 26.1 26.7 29.7 28.6 France: Taxes on income … 18.6† 16.5 16.8 18.2 Social security contributions … 32.5 36.2 37.7 39.0 Germany: Taxes on income … 26.9‡§ 30.7 29.8 30.0 Social security contributions … 29.8 28.1 29.4 30.1 Italy: Taxes on income … 21.1 20.8 22.9 22.5 Social security contributions … 31.0 33.6 34.4 36.5 Luxembourg: Taxes on income … 38.9 36.1 34.2 Not available Social security contributions … 28.5 30.5 31.8 Not available Netherlands: Taxes on income … 40.1 41.1 37.2 36.2 Social security contributions … 27.1 26.8 33.7 36.5 United Kingdom: Taxes on income … 40.5 40.0 37.3 38.4 Social security contributions … 13.1 14.1 15.3 13.7 * Excluding taxes on capital. † Taken from earlier returns; may not be comparable with figures for later years. ‡ Excluding casualty insurance transactions. § Excluding Saar and West Berlin.
§ Mr. Scottasked the Chancellor of the Exchequer how British membership of the European Economic Community will restrict freedom to alter direct taxation rates and allowances within the United Kingdom.
§ Mr. Patrick JenkinThe Community has not plans for harmonisation of company or personal tax rates and allowances.
§ Mr. Knoxasked the Chancellor of the Exchequer, from information available from international sources, what are the threshold levels of earned income at
United Kingdom Belgium France Germany Italy Luxembourg Netherlands Single person 418 473 544 400 408 500 492 Married couple 598 525 852 400 605 633 646 Married couple with 1 child aged 6 798 578 1,027 400 743 775 700 Married couple with 2 children aged 12 and 6 975 630 1,226 400 936 958 756