§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will publish a table showing, for a married couple with two children aged 9 and 13 years (a) the income tax threshold converted into £ sterling, (b) the income tax threshold as a percentage of average industrial earnings, (c) the initial rates at which income tax is charged, (d) the maximum rates chargeable, and (e) the level of income at which maximum rates are charged converted into £ sterling, and as a percentage of average industrial earnings for each of the EEC member States, and for Sweden, 657W the United States of America, Canada and Japan.
Country Income tax threshold Threshold as percentage of average industrial earnings Initial rates at which income tax is charged Maximum rates chargeable Level of income at which maximum rates are charged Level of income at which maximum rates are charged as percentage of average industrial earnings (a) (b) (c) (d) (e) (f) £ % % % £ % Belgium(1) 1,210 42.0 11.9 69.6 44,950 1,576 Denmark(2) 990 23.0 36.1 60.7 7,030 162 France 2,250 100.0 3.6 54.0 37,140 1,648 Germany 1,380 38.0 19.0 55.1 37,330 1,013 Ireland 1,230 56.0 26.0 80.0 11,580 524 Italy 1,050 67.0 10.0 82.0 352,930 22,410 Luxembourg 1,515 58.0 12.0 57.0 13,200 507 Netherlands 1,580 44.0 24.0 71.0 23,200 640 Sweden(3) 2,450 63.0 42.2 77.2 14,490 375 UAS(4) 1,840 47.0 14.0 55.5 21,580 554 Canada(5) 2,300 55.0 23.5 61.3 29,850 707 Japan(6) 2,420 68.0 7.0 83.7 133,280 3,763 United Kingdom— 1974–75* 1,380 54.0 33.0 83.0 21,380 842 1977–78* 1,856 43.0 34.0 83.0 22,856 528 NOTES:
A. The figures of average industrial earnings are derived from OECD sources. The latest year for which this information is available is 1974, except for Luxembourg (1973). Figures for the United Kingdom are also given for 1977–78, after taking into account the October 1977 increases in allowances.
B. Foreign currencies are converted into sterling at the average rates for 1974 (Luxemboug 1973).
C. All items refer to a married man with two children aged 9 and 13. It is assumed all income is employment income of the husband.
Individual Countries
- (1) Belgium—local income tax surcharge at the local rates is included.
- (2) Denmark—Local income tax at the Copenhagen rates included.
- (3) Sweden—Local income tax has been included. It started at the average rate of 23.2 per cent. at the equivalent of £1,020, or 26 per cent. of the average wage.
- (4) United States of America—Income tax at the Californian rate is included. This started at 2 per cent. at 80 per cent. of the average wage, sterling equivalent £3,120.
- (5) Canada—The Ontario income tax surcharge is included.
- (6) Japan—Local income tax is included. This started at the equivalent of £1.585 at a rate of 3.5 per cent.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will publish a list of figures showing (a) the starting rate of income tax, (b) the top rate of income tax, and (c) the rate of inflation, beginning with the highest, in respect of the following countries: the United Kingdom, Sweden, the United States of America, Canada, Japan and each of the member States of the European Community.
§ Mr. Robert SheldonThe information requested is as follows:
658W
(a) Starting rates of income tax percentage Denmark 38.6 (1) United Kingdom 34 Sweden 28.8 (2) Canada 24.5 (3) Germany 22 Ireland 20 Netherlands 19.2 Luxembourg 18.5 United States of America 15 (4)
§ Mr. Robert SheldonThe information requested is given in the table below:
Belgium 11.8 (5) Italy 10 Japan 9.4 (6) France 3.6
(b) Top rate of income tax percentage United Kingdom 98 Japan 93(6) Sweden 84.8 (2) Italy 76 (7) Belgium 75.6 (5) United States of America 73.3(4) Netherlands 72 Denmark 63.8 (1) Canada 61.9 (3) Ireland 60 France 60 Luxembourg 58.4 Germany 56 General Notes
A. The rates are those for 1977, except for the United Kingdom and Ireland (1977–78) and for Canada, Germany, Netherlands and Luxembourg (1978).
659WB. The figures assume income is either all earned from employment, or all investment income. In all cases the rates are those applicable when tax becomes payable. All figures relate to a married man with two children age 9 and 13, except for Sweden and the United States of America where a single man begins to pay tax at the lower rate shown. In those countries a married man with two children aged 9 and 13 would begin to pay tax at 51.8 per cent. and 28 per cent. respectively because of the progressive withdrawal of tax credits at those income levels.
C. In the following countries the top rate for income from employment is lower:
- United Kingdom, 83.
- Japan, 83.7 (6).
- Italy, 72.
- United States of America, 55.5 (4).
- France, 54.
Individual countries
- (1) Includes local income tax at Copenhagen rate.
- (2) Includes local income tax at Stockholm rate.
- (3) includes the Ontario income tax surcharge.
- (4) Includes Californian income tax.
- (5) Includes local income tax at rates applicable to the great majority of the population.
- (6) Includes local income tax at rates applicable to the great majority of the population.
- (7) Includes the maximum amount of local tax payable.
(c) The latest available figures from OECD sources for increases in consumer price indices are given below (not set out in descending order as the latest available figures relate to different months):
(a) (b) (c) Average earnings 2 × average earnings 3 × average earnings % % % Belgium 21.3 (29.0) 41.3 (46.3) 46.4 (47.4) Denmark 38.6 (42.8) 53.0 (57.2) 63.8 (68.0) France 7.2 (15.0) 14.4 (16.1) 21.6 (23.1) Germany 22.0 (34.6) 22.0 (30.2) 37.3 (37.3) Ireland 35.0 (25.0) 45.0 (45.0) 60.0 (60.0) Italy 22.0 (27.8) 29.0 (34.1) 34.0 (38.9) Luxembourg Nil (12.0) 26.7 (34.0) 37.9 (37.9) Netherlands 20.0 (32.6) 32.0 (43.0) 50.0 (50.0) United Kingdom 34.0 (39.75) 40.0 (40.0) 60.0 (60.0) USA 25.0 (30.8) 27.0 (32.8) 35.0 (35.0) Japan 2.8 (10.4) 20.0 (20.4) 24.0 (24.4) Australia 35.0 45.0 55.0 Notes
(1) United Kingdom average earnings are derived from the new earnings survey figures of April 1977 for the average weekly earnings
660W
Country Percentage increase in preceding year Month United Kingdom 12.1 December 1977 Sweden 12.5 October 1977 USA 6.7 November 1977 Canada 9.5 December 1977 Japan 6.2 November 1977 France 9.1 November 1977 Germany 3.5 December 1977 Denmark 12.7 October 1977 Italy 15.4 November 1977 Belgium 6.5 October 1977 Netherlands 5.4 October 1977 Luxembourg 5.4 October 1977 Ireland 13.5 August 1977
§ Mr. MacGregorasked the Chancellor of the Exchequer (1) whether he will publish a table showing the marginal rates of income tax plus social security contributions for a married man with two children under 11 years of age on (a) average United Kingdom earnings and equivalent sums, (b) twice average United Kingdom earnings and (c) three times average earnings for the EEC countries, the United States of America and Japan;
(2) if he will show the marginal rates of tax on earned income for a married man with two children under 11 years of age, in the EEC countries, the United States of America, Japan and Australia, for (a) a family with United Kingdom average earnings and its foreign currency equivalent, (b) a family on twice average earnings and (c) a family on three times average earnings.
§ Mr. Robert SheldonThe marginal rates of tax requested are as follows—the figures in brackets include social security contributions where payable:
of full-time adult male workers in all occupations, manual and non-manual, updated to November 1977 by reference to the monthly index of average earnings.
661W(2) Exchange rates used were those in force at 15th November 1977.
(3) The rates of tax were those in force at November 1977.
(4) Figures are for a married man with two children under 11. It is assumed all income is that of the husband.
(5) Local income taxes are included where payable for
- Belgium—at the normal rates applicable to the majority of those paying local income tax.
- Denmark—at the Copenhagen rates.
- USA—at the Californian rates.
- Japan—at the normal rates applicable to the majority of those paying local income tax.
(6) For Luxembourg the 2.5 per cent. surcharge for the unemployment fund is included.
(7) The figures take into account flat rate reliefs and the deductibility of social security contributions for income tax purposes.