§ 4. Mr. O'Neillasked the Chancellor of the Exchequer what was the total yield of taxes on personal income, including employees' national insurance contributions, value added tax and other indirect taxes in 1978–79; what this sum would have been in 1982–83 prices, assuming the indexation of thresholds, allowances and excise and other indirect tax rates; and what will be the actual yield from these taxes in 1982–83.
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§ Mr. RidleyThe total yield of taxes falling mainly on persons was about £42 billion in 1978–79 and £76 billion in 1982–83. If, hypothetically, the 1978–79 tax system, assuming indexation, was applied to actual 1982–83 levels of activity, wages, prices and so on, the yield of these taxes would have been about £67 billion. Of course, the assumption that activity, wages, prices and so on would have remained the same had the hypothetical tax system applied is hardly realistic.