HL Deb 14 May 1981 vol 420 cc681-2WA
Lord Kaldor

asked Her Majesty's Government:

Whether they will provide figures of the percentages of total income payable in tax for the financial years 1978–79 1979–80, 1980–81 and (in accordance with the Chancellor of the Exchequer's recent proposals) for 1881–82 for the same types of cases and on the same or analogous assumptions as those specified in the earlier Questions answered on 9th July 1979 and 28th April 1980, assuming that both earnings and prices in April 1982 will exceed those of April 1981 by 12 per cent.

The Minister of State, Treasury (Lord Cockfield)

I refer the noble Lord to the Note prepared recently for the Select Committee on the Treasury and which is now published. On the basis of the information in this Note, estimates in percentage terms of the tax payable by the married couple at various income levels are as follows—

Income tax per cent. Indirect taxes per cent.
Two-thirds average earnings 15.7 20.9
1 x average earnings 21.5 17.4
1½ times average earnings 25.3 15.0
Two-thirds average earnings 14.9 21–5
1 x average earnings 19.9 18.6
1½ times average earnings 23.3 16.6
Two-thirds average earnings 16.0 21.6
1 x average earnings 20.7 18.6
1½ times average earnings 23.8 16.6
Two-thirds average earnings 17.4 23.1
1 x average earnings 21.6 19.3
1½ times average earnings 24.4 17.1

These figures differ from those provided in reply to previous questions partly because assumed average earnings are higher and partly because all indirect taxes and not just those specified have been taken into account.