§ Mr. Sproatasked the Chancellor of the Exchequer what estimate he has made of the sum by which the present income tax yield would be increased or decreased by imposing a flat income tax rate of 15 per cent., 20 per cent., and 25 per cent., respectively, on all sources of income, including all sums currently tax deductible, but excluding income from state retirement pension.
§ Mr. Robert SheldonThere is not sufficient information about income currently exempt from income tax or about deductions from income for tax purposes to enable a complete estimate to be made, but if tax were charged on total income—as defined in "Inland Revenue Statistics 1976", p. 159—excluding State retirement pensions the effect on the income tax yield would be:
Tax Rale % Effect on Revenue 15 Decrease of £5,700 million 20 Decrease of £1,400 million 25 Increase of £2,800 million