Mr. Batesasked the Chancellor of the Exchequer what would be the extra revenue produced by increasing the rate of income tax to 100 per cent. on all income above (a) £20,000 per year (b) £15,000 per year (c) £10,000 per year (d) £7,500 per year and (e) £5,000 per year.
§ Mr. Robert SheldonAssuming that gross incomes were not reduced in consequence of the change proposed, and that the income limits specified refer to income after tax, the additional yield for 1975–76 from taxing the whole of the income in excess of the specified limit would be as follows:
Calculations on the basis of before tax income limits are complicated, particularly in respect of the investment income surcharge, and require the writing of additional computer programmes. This is in hand, and I will write to my hon. 349W Friend as soon as the results are available.
Limit of net income after tax Yield £ £m 20,000 … … … … 5 15,000 … … … … 9 10,000 … … … … 35 7,500 … … … … 170 5,000 … … … … 960