HC Deb 28 July 1980 vol 989 c473W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table

THRESHOLD AT WHICH INCOME TAX ON EARNED INCOMES BECOMES PAYABLE AT 50 PER CENT.
Single £ Married couple single-wage £ Married couple with two children single-wage £
United Kingdom … … … … 18,126 18,896 18,896
USA (Note 2) … … … … 17,860 26,050 26,890
(10,290) (15,570) (15,570)
France (Note 3) … … … … 43,890 43,890 43,890
Germany … … … … 15,060 29,720 30,010
Japan (Note 2) … … … … 46,750 47,370 48,630
(25,180) (25,800) (27,360)

Notes:

1. Conversions to sterling were made at the exchange rates prevailing on 14 July 1980. Such conversions may not reflect differences in purchasing power between sterling and other currencies.

2. Figures in brackets include local taxes. For the USA the rate taken is the Californian rate and, for the married and married plus two children, the threshold quoted is for a tax rate of 48 per cent. For Japan, the local rate used is that applying for the majority of the population. The thresholds shown for Japan are for a tax rate of 49–5 per cent. without local taxes, and 51–3 per cent. with them.

3. For France, the effects of a ceiling on both the minimum expenses deduction and the employment income relief mean that, for single people and childless married couples, there is an abrupt rise in marginal rates from 43–2 per cent. to 60 per cent. The thresholds shown refer to a rate of 60 per cent.; for a 43–2 per cent. rate the thresholds would be £19,330 for single people and £38,170 for childless married couples.

4. Personal reliefs, minimum expenses deductions, employment income relief and other flat rate reliefs have been taken into account, as have deductible social security contributions. Child benefits have been ignored.

Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will update the reply given to the hon. Member for Norfolk, South (Mr. MacGregor), Official Report, 24 July 1978, c. 502. showing the percentage of earnings absorbed by income tax and employees'

PERCENTAGE OF EARNINGS ABSORBED BY INCOME TAX AND EMPLOYEE'S SOCIAL SECURITY CONTRIBUTIONS
Average United Kingdom earnings (£6,245) 2 X average United Kingdom earnings (£12,490) 3 X average United Kingdom earnings (£18,735)
Per annum Per annum Per annum
United Kingdom … … 26.5 28.7 33.4
France … … 12.4 15.4 19.2
Germany … … 25.4 25.2 29.2
United States of America … … 14.3 (15.6) 21.7 (25.5) 27.0 (32.9)
Japan … … 10.1 (11.9) 12.9 (18.1) 16.1 (23.5)