§ Lord Kaldorasked Her Majesty's Government:
Whether they will provide the following information in addition to that given in their Written Answer of 14th May 1981, H. L. Deb. col. 681, for the same type of cases and for the same years, in respect of—
- (a) the percentage of gross earnings payable in income tax and social insurance contributions taken together; and
- (b) the percentage of actual or anticipated consumption expenditure taken for total indirect taxes, including local taxes, national insurance surcharges and the like.
§ Lord CockfieldThe figures requested are as follows:
Earnings Year Income Tax and National Insurance Contributions as % of Gross Earnings Total Indirect Taxes as % of Consumption Expenditure 1978–79 ⅔ average 22.2 30.7 average 28.0 27.5 1½ x average 31.8 25.1 1979–80 ⅔ average 21.4 31.3 average 26.4 28.9 1½ x average 29.8 27.0 1980–81 ⅔ average 22.8 32.0 average 27.4 29.3 1½ x average 30.5 27.4 1981–82 ⅔ average 25.1 34.3 average 29.3 31.2 1½ x average 32.1 28.8 The figures for 1981–82 were calculated on the illustrative assumption that earnings between 1980–81 and 1981–82 increase in line with the forecast growth in prices, that is by 10½ per cent. Since the share of 1342WA income tax and the NICs is calculated with respect to gross income, whereas the share of indirect taxes relates only to that part of gross income which is spent, the figures in the two columns cannot be aggregated to give an overall calculation of the tax burden.