HC Deb 11 June 1979 vol 968 cc148-50W
Mr. Richard Shepherd

asked the Chancellor of the Exchequer what is the current annual payment in income tax made by a married man, with two children under 11 years of age, earning £5,000 per year in the United Kingdom; and what information he has from international sources of the comparable income tax payments made in the United States of America, France, West Germany, Holland, Sweden, Norway, Japan, Australia and New Zealand, respectively.

Mr. Peter Rees,

pursuant to his reply [Official Report, 25 May 1979; Vol. 967, c. 302], gave the following answer:

The information requested is given in the table below:

INCOME TAX PAYMENTS MADE BY MARRIED MAN WITH TWO CHILDREN UNDER 11 EARNING £5,000 PER YEAR
£
United Kingdom 1,037
United States of America 200
France 62
West Germany 342
Netherlands 368
Sweden — (966)
Norway 75 (830)
Japan 21 (67)
Australia 603
New Zealand 1,202

Notes:

1. All figures relate to the income year 1979 or 1979–80, except for France (1978), whose income tax rates are fixed in arrear, Japan (1978) and New Zealand (1978–79).

2. Currency conversions have been made at the exchange rates prevailing on 22 May 1979. The exchange rate between the United Kingdom and overseas countries may not fully reflect differences in consumers' purchasing power between the United Kingdom and those countries.

3. It is assumed that the whole of the income is that of the husband.

4. In computing tax liabilities, account has been taken of personal allowances and reliefs, employment income reliefs, minimum deductions for expenses, deductible social security contributions, and any other flat rate relief against employment income. No account has been taken of social security benefits payable in respect of children.

5. The figures in brackets include local income taxes, as follows:

  1. (a) for Sweden, local income tax at the Stockholm rate;
  2. (b) for Norway, the average rate of communal income tax;
  3. (c) for Japan, prefectural and municipal income taxes at the rates payable by the majority of the population.
In the case of the United States of America no Californian income tax is chargeable on the dollar equivalent of £5,000.