§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for the United States of America and the United Kingdom the change in the incidence of (a) direct and (b) indirect taxation since 1979 for a person on average earnings so far as this can be calculated.
§ Mr. MooreThe figures in the following table give a comparison of(a) income tax and social security contributions (b) indirect tax payments as a percentage of gross earnings of an average production worker (APW). The APW is assumed to be a married man with a non-earning wife and two children. Indirect tax payments (excluding LA rates) are given only for the UK APW. These are based on a typical expenditure pattern for this earnings level derived from the family expenditure survey. Equivalent information for the US is not readily available.
108W
Per cent. of gross earnings United States (California) United Kingdom 1979 (United Kingdom 1979–80) (a) Income tax and employees' social security contributions 15 26 (b) Indirect taxes N/A 12 1983 (United Kingdom 1983–84) (a) Income tax and employees' social security contriubtions 16 29 separately, for a married man with two children on average earnings in 1954, 1960, 1970, 1975, 1979 and in each succeeding year, including the position of such a family under the proposals contained in his Budget statement.
§ Mr. MooreInformation is in the following table, which relates to a married man with two children aged under 11 with earnings equal to the average for full time adult male manual workers. The basis of the calculations is the most appropriate for comparisons with years before 1979–80 when child tax allowances were available.
Per cent. of gross earnings United States (California) United Kingdom (b) Indirect taxes N/A 12 Notes:
1. As comparable figures for all occupations average earnings are not available, the comparison has been made instead on the basis of an average production worker (APW). The 1979 APW figures are those published by OECD. The 1983 figures are derived from updating the published OECD figures for 1982.
2. Personal reliefs, employment income reliefs and other standard reliefs have been taken into account.
3. It is assumed that the UK employee is contracted-in to the State pension scheme.
4. The figures for the USA include local income taxes.
5. If child benefits were deducted from the UK's income tax and social security contributions, the percentages would be:
per cent. 1979–80 17 1983–84 21 There are no child benefits or analogous payments in the USA.