§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will give as much detailed information as may be available showing to what extent the average household, or a defined household group, paid income tax and other stated taxes in the years 1974, 1975, 1976, 1977 and to date; and if he will give similar details for a defined household group on the higher taxed range of families.
§ Mr. Robert SheldonThe average household is assumed to be a married man with two children under 11 years, on average earnings. The higher taxed family has the same composition but three times average earnings. The table below shows the percentage of earnings paid in direct and indirect taxes for both households:
PERCENTAGE OF EARNINGS Direct Tax Indirect Tax Average Earnings 1974 21.6 18.9 1975 24.4 17.9 1976 24.5 19.0 1977 21.8 — 3 Average Earnings 1974 32.4 11.4 1975 38.0 11.2 1976 39.3 11.1 1977 36.2 — Direct tax comprises income tax and employees' national insurance contributions; family allowance and child benefit are treated as offsets to tax.
Indirect taxes cover those on final goods and services, on intermediate products and local rates as defined in "the effects of taxes and benefits on household income 1976" Economic Trends February 1978.
740WThe latest year for which direct tax figures are available is 1977, for indirect tax 1976.