§ Mr. Churchillasked the Chancellor of the Exchequer what is the effective percentage rate of tax on (a) a Frenchman with an earned income of £20,000 and (b) a Briton with an earned income of £5,000, assuming each is married with two children under 12 years of age.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 1st December 1978; Vol. 959, c. 419], gave the following answer:
The information requested is as follows:
(a) 14 .1 per cent. ; (b) 14.75 per cent.
NOTES
1. The calculations take into account—as is the usual practice—for both the United Kingdom and France, child benefits as well as personal tax relief, and, in the case of France, the minimum deduction for expenses, the employment income relief, and the deduction for social security contributions. If child benefits were left out of account, the rates would be(a)15 .3 per cent. and(b)20 .3 per cent.
2. The sterling income of £20,000 was converted to francs at the exchange rate prevailing on 29th November 1978. Conversions at prevailing exchange rates do not necessarily reflect differences in the purchasing power of individual countries' currencies.