§ 1. Conversions to sterling were made at the exchange rates prevailing in London on 3rd November 1978. Such conversions do not reflect differences in domestic purchasing power between United Kingdom and individual foreign countries' currencies.
§ 2. The income is assumed throughout, in the case of the married couples, to be wholly the husband's income. Personal reliefs, minimum expenses deductions, employment income reliefs, other flat-rate reliefs, deductible taxes and deductible social security contributions have been taken into account. Voluntary contributions to social security schemes have been ignored.
§ 3. Figures are for the tax year 1978 or 1978–79, except for France (1977) whose rates are fixed in arrear at the end.
§ Local income taxes
§ Tables 1B, ID, 2B and 2D take account of the following local income taxes, for the countries which have such taxes on employment income:
§ Belgium—Local surcharge on the national income tax, at the rates payable by the majority.
§ Denmark—Local income taxes at Copenhagen rates.
§ USA—California state income tax.
§ Canada—Ontario provincial income tax.
§ Japan—Prefectural and municipal inhabitants' taxes at the rates payable by the majority.
§ Sweden—Local income taxes at Stockholm rates, excluding the Church Tax which taxpayers may opt out of.
§ Mr. Andrew F. Bennettasked the Chancellor of the Exchequer what increase in gross income would be required on 1st November 1978 to maintain the real disposable income of a married man with two children under 11 years of age, taking into account payment of tax, national insurance, and 5 per cent. of earnings as superannuation fund contributions, who
518Won 1st November 1974 earned (a) £30 per week and (b) the average male industrial manual workers earnings at that date.
Mr. Robert Sheldon, pursuant to his reply [Official Report, 12th December 1978; Vol. 960, c. 144] gave the following reply
The required increases between November 1974 and November 1978, taking account of family allowance and child benefit, would be
- (a) £20.10 per week
- (b) £3641.70 per week
In b the earnings figure used for November 1974–£51.20 per week—is an interpolation between estimates of the earnings of full-time men workers in manual occupations in April 1974 and April 1975, as given by New Earnings Survey results, assuming that movements of the average earnings of this group of men were similar to the movements in the seasonally adjusted index of average earnings published in the Department of Employment Gazette.
These figures are based on the tax rates and allowances for 1978–79 contained in the Finance Act 1978, and take account of child benefit at £2.30 per week for each child, the rate payable at 1st November 1978. If the increase in child benefit to £3 per week made in November 1978 is included, the necessary increases became
- (a) £18.00 per week
- (b) £34.20 per week
§ Mr. MacGregorasked the Chancellor of the Exchequer whether he will publish a table showing, on a quarterly basis 519W starting at June 1970 (a) the real take-home pay and (b) the real net income of a married man with two children under 11 years of age with average adult male earnings, all expressed in terms of September 1978 prices.
REAL WEEKLY TAKE HOME PAY AT OCTOBER 1978 PRICES March £ June £ September £ December £ 1970 … … … — 65.80 66.50 66.70 1971 … … … 66.20 67.00 68.10 67.30 1972 … … … 68.60 71.10 72.30 72.40 1973 … … … 72.40 72.90 72.70 71.90 1974 … … … 70.70 70.80 72.80 74.90 1975 … … … 71.90 67.70 69.50 69.10 1976 … … … 68.60 69.50 68.40 66.90 1977 … … … 65.10 65.40 65.40 66.70 1978 … … … 67.10 69.50 — —
REAL WEEKLY NET INCOME AT OCTOBER 1978 PRICES March £ June £ September £ December £ 1970 … … … — 68.20 68.90 69.00 1971 … … … 68.40 69.20 70.30 69.50 1972 … … … 70.80 73.30 74.50 74.50 1973 … … … 74.50 74.90 74.70 73.80 1974 … … … 72.40 72.40 74.50 76.40 1975 … … … 73.40 69.90 71.60 71.20 1976 … … … 70.60 71.30 70.30 68.70 1977 … … … 66.90 68.10 68.10 69.30 1978 … … … 69.70 74.20 — — The figures have been shown at October 1978 prices so that they are comparable with the figures given in answer to the hon. Member on Thursday 14th December. To convert them to September prices they should be multiplied by 0.9955, but the relativities between the figures remain unchanged.
The earnings figures for June, September, December 1977 and March 1978 have been revised from those on which my answer of 18th July 1978 was based —[Vol. 954, c. 166], as the New Earnings Survey estimates for April 1978 are now available.
The assumed level of average earnings for June 1978 has been obtained by up-dating the New Earnings Survey estimate of average earnings of full-time adult males in April 1978 taking account of movements in a centred 3-month moving average of the whole economy index of average earnings of all employees.
520WMr. Robert Sheldon, pursuant to his reply [Official Report, 11th December, 1978; Vol. 960, c. 46], gave the following reply
The figures are as follows:
Apart from these points the figures are on the same basis as those given in the previous answers. The figures for June 1978 incorporate the effect of the amendments made during the passage of the Finance Bill.
§ Mr. MacGregorasked the Chancellor of the Exchequer if he will estimate, for each of the years 1970–71 and 1978–79, the average earnings of persons entitled to the wife's earned income allowance, and set out a table showing the percentage of income paid in tax and national insurance contributions comparable with that provided for in the Written Answer to the hon. Member for Woking (Mr. Onslow) in the Official Report, 1st December, c. 438.
Mr. Robert Sheldon, pursuant to his reply [Official Report, 11th December 1978; Vol. 960, c. 47], gave the following reply
521WThe figures are as follows:
Percentage of earnings paid in tax and National Insurance contributions Average earnings £pa Tax Per cent. NIC Per cent. 1970–71 … … … 530 6.8 0.9 1971–72 … … … 610 9.5 1.4 1972–73 … … … 690 4.3 1.8 1973–74 … … … 800 7.7 2.3 1974–75 … … … 1,040 13.2 4.2 1975–76 … … … 1,290 16.7 2.0 1976–77 … … … 1,500 17.8 2.0 1977–78 … … … 1,630 14.3 2.0 1978–79 (August) … … … 1,830 12.0 2.0 The figures for the average earnings of married women for whom the wife's earned income allowance is due are derived from the Survey of Personal Incomes. The survey covers only those married women whose earnings are notified to the Inland Revenue, i.e. in general those whose incomes come within PAYE at some time in the year. The most recent survey results are for 1976–77, and estimates for earnings, in 1977–78 and 1978–79 have been obtained by projecting those for 1976–77 in line with movements in average earnings shown by the New Earnings Survey and the monthly index of average earnings.
It has been assumed that the wife would opt to pay the minimum national insurance contribution.