§ Miss Joan Lestorasked the Chancellor of the Exchequer in what way he proposes to carry forward the Government's 245W consideration of proposals for structural changes in taxation of the family.
§ Mr. Joel BarnettThe Government recognise the need for the tax system to adapt to changing patterns of family life and changes in the status of women. There is however no clear consensus on the form which any structural changes should take, raising as they do such matters as the aggregation of the incomes of husband and wife, the treatment of the working wife and her husband, and the fundamental question whether the family or the individual should be regarded as the basic unit for tax purposes. The possible options, and their social, economic, distributional and administrative implications, require very careful consideration and full public discussion, before decisions are reached.
The Government have therefore decided to put work in hand on the preparation of a Green Paper on the taxation of the family. The precise scope of the Green Paper will be subject to review in the light of developments, including the Equal Opportunities Commission's analysis of the public reactions to its discussion document, but it will be primarily concerned with the income tax treatment of the family, including the personal tax allowances and the principle of aggregation.
The Government believe that a Green Paper on these lines is the best way of carrying forward the debate on these important issues. We hope to have it ready for publication within the next twelve months.