§ Mr. Squireasked the Secretary of State for Social Services how many (a) of the 850,000 taxpayers lifted out of tax as a result of the increase in personal tax allowances and (b) the 400,000 lifted out of tax as a result of the increase in personal allowances above that required by indexation are estimated currently to be facing an effective marginal deduction rate of (a) 100 per cent. or more, (b) 80 per cent. or more, (c) 70 per cent. or more, (d) 60 per cent. or more and (e) 50 per cent. or more.
§ Mr. Kirkwoodasked the Secretary of State for Social Services if he will provide information on the estimated numbers of wage earners who will face effective marginal deduction rates as a result of the combination of tax/ national insurance and withdrawal of housing benefit, after April of (a) more than 70 per cent., (b) 65 to 70 per cent., (c) 51 to 64 per cent. and (d) up to 50 per cent.; and how many of these are also in receipt of family income supplement.
§ Dr. BoysonI regret that the precise information requested is not available. The combined effect of the housing benefit changes in April and November will be that broadly about 90,000 families and single people will have marginal tax rates of between 50 and 75 per cent. and 270,000 rates above 75 per cent. These marginal tax rates are calculated as including income tax, national insurance and family income supplement as well as housing benefit. The estimated effect of the increases in tax thresholds announced in the Budget is that up to 20,000 of the people within the combined bands indicated will cease to pay income tax.