§ Mr. Horamasked the Chancellor of the Exchequer what would be the effect, in absolute and percentage terms, on the net weekly income of a married man with two children aged eight and eleven years, earning £1,000, £1,500, £2,000, £2,500, £3,000, £3,500, £4,000, £4,500, £5,000, £5,500, £6,000, £6,500, £7,000, 276W £7,500, £8,000, £8,500, £9,000, £9,500 and £10,000, if employees' contributions to national insurance were abolished and the same total revenue was raised by an addition to the standard rate of income tax, assuming that the family has no other income than the husband's plus family allowance, that the rates of income tax, surtax and allowances are those prevailing now, and that the man pays insurance contributions at the rates for an adult male employee, not contracted out, but paying graduated contributions at weekly rates; and if he will also express the result in terms of the simplified income tax rates and allowances coming in in 1973–74.
§ Mr. NottThe figures are:
Annual Earnings 1972–73 rates and allowances 1973–74 rates and allowances A A B B £ £p Per cent. £p Per cent. 1,000 +1.38 +7.0 +1.38 +7.0 1,500 +1.2.4 +4.8 +1.19 +4.6 2,000 +0-99 +3.1 +0.88 +2.8 2,500 +0.73 +1.9 +0.55 +1.4 3,000 +0.02 +0.04 -0.23 -0.5 3,500 -0.69 -1.3 -1.01 -2.0 4,000 -1.41 -2.4 -1.79 -3.1 4,500 -2.19 -3.4 -2.57 -3.9 5,000 -2.98 -4.2 -3.34 -4.6 5,500 -3.76 -4.8 -4.13 -5.3 6,000 -4.53 -5.4 -4.90 -5.7 6,500 -5.32 -5.9 -5.07 -5.6 7,000 -5.95 -6.2 -5.07 -5.2 7,500 -6.88 -6.9 -5.07 -4.9 8,000 -7.63 -7.3 -5.07 -4.7 8,500 -8.41 -7.7 -5.07 -4.5 9,000 -9.19 -8.1 -5.07 -4.3 9,500 -9.93 -8.5 -5.07 -4.2 10,000 -10.71 -8.8 -5.07 -4.0 Notes:
(1) Columns A are on the basis of the present tax system with surtax rates for 1972–73 assumed to remain unchanged; Columns B are on the unified tax system with provisional rates of tax and allowances given in the Finance Acts of 1971 and 1972.
(2) FIS has been included where appropriate.
(3) FAM has only been taken into account where it is to the advantage of the taxpayer.