§ Mr. Ian Stewart
asked the Chancellor of the Exchequer (1) if he will publish a table on the same basis as his reply to the hon. Member for Norfolk, North, Official Report, 2 December 1977, c. 462,920W
the real purchasing power of the residual income in terms of 1978–79 prices together with similar figures for persons on one-third average earnings and one-half average earnings.
§ Mr. Robert Sheldon
The figures are as follows:
showing the effective rates of income tax plus national insurance contributions for each of a single person, a married couple, and a married couple with two and four children under 11 years of age, assuming average male manual earnings in each case in 1960–61, 1964–65, 1973–74, 1978–79 and for 1979–80 with and without the adjustment required by section 22 of the Finance Act 1977;
(2) if he will estimate the revenue cost of raising the threshold for investment income surcharge to £4,500 and levying it at (a) 10 per cent. and (b) 15 per cent.;
(3) how many taxpayers will be liable to income tax at higher rates in 1979–80, assuming no increase in the threshold for higher rates;
(4) whether he will indicate the number of taxpayers, counting earning wives separately, who would be taken out of liability to income tax in 1979–80 (a) by implementation of section 22 of the Finance Act 1977, (b) by raising the main personal allowances by 25 per cent. And (c) by raising the allowances by 50 per cent.;921W
(5) whether, on the basis of 1979–80 revenue estimates, he will indicate the revenue cost of reducing the top rate of income tax on earned income to 60 percent. and on investment income to 75 per cent.;
(6) whether he will state the amount of income tax expected to be raised per household during the year 1979–80 with and without the adjustments required by section 22 of the Finance Act 1977;
(7) whether, on the basis of projected 1979–80 income figures, and tax allowances with and without the adjustments required by section 22 of the Finance Act 1977, he will estimate the revenue cost of cutting the basic rate of tax to 30 per cent, and eliminating the reduced rate band, restoring the main personal allowances to their real equivalent value of April 1973 and restoring the higher rate tax bands to their real equivalent value of April 1973; and if he will indicate the cost of introducing all three changes simultaneously;
(8) whether, on the basis of 1979–80 revenue estimates, he will indicate the revenue cost of reducing the top rate of income tax on earned income to 50 per cent. and on investment income to 65 per cent.;
(9) whether, in the light of 1978–79 tax rates and allowances, with and without the adjustments required under section 22 of the Finance Act 1977, he will publish a table in the Official Report showing, for 1973–74 and 1979–80 the effective rate of tax plus social security contributions for a man with two children aged under 11 years having income, all earned, equivalent to the national average earnings, twice the average and three times the average, on a basis comparable with that given in his reply to the hon. Member for Aylesbury (Mr. Raison) in the Official Report, 11 November 1977, c.272;
(10) whether he will indicate the revenue expected from capital gains tax in 1978–79 and the estimate for 1979–80, and show approximately how much these figures would be reduced if inflationary gains were relieved from the tax;
(11) whether he will indicate the estimated yield of the following taxes respectively in 1978–79 and the expected yield in 1979–80 on the assumption of (a) no change in tax rates or allowances and 922W (b) implementation of section 22 of the Finance Act 1977: income tax, capital gains tax, investment income surcharge, corporation tax, development land tax, capital transfer tax, stamp duties, value-added tax, petroleum excise duty, alcohol duties, car tax, vehicle excise duty and national insurance surcharge;
(12) whether he will estimate the social wage and its component parts for 1977–78 and 1978–79 in similar terms to the answer give to the hon. Member for Braintree (Mr. Newton) in the Official Report, 10 November 1977, c. 185.
(13) what percentage of average male national earnings was represented in 1973–74 and 1978–79, and is estimated to be represented in 1979–80 by the income tax threshold for a single person and a married couple on a basis comparable with written answer, Official Report, 20 July 1977, c. 579–81.
§ Mr. Robert Sheldon
I regret that in the time available it has not been possible to provide the information requested. I will write to the hon. Member.