Income Tax and National Insurance

HC Deb 28 April 1983 vol 41 cc422-3W

29. Mr. Winnick

asked the Chancellor of the Exchequer what was the effect of each of his Budgets on the percentage paid in income tax and national insurance contributions by those on average and less than average incomes.

Mr. Ridley

At average earnings and below, increases between 1978–79 and 1983–84 in income tax and national insurance contributions, for contracted-in employees, as a percentage of earnings lie within the range from 1½ to 4½ percentage points. These increases include a 2½ point increase in national insurance contributions, offset by reductions in the average rate of income tax for married men above three-quarters average earnings and for single people above 60 per cent. of the average.