§ Sir Geoffrey Finsbergasked the Chancellor of the Exchequer if he will set out full details of the personal taxation and structure as at present in force in (a) France, (b) Japan, (c) Canada, (d) (e) the United States of America and (e) West Germany.
§ Mr. MoorePersonal income tax systems are complex and the details differ substantially from country to country.
601WThe information given in the tables below provides some indication of the rates and structures of taxation levied at national level in the countries mentioned.
Table 1 Income Tax Thresholds in £—employment income Single Person Married Couple with no dependent children France 4,215 4,635 Japan 2,475 3,385 Canada 2,130 3,970 USA 1,810 3,135 West Germany 1,795 3,100 Notes:
- (a) The thresholds represent the gross employment income at which liability to tax begins.
- (b) the thresholds are those for 1986, except in the case of France where the 1985 thresholds are quoted. This is because France will not fix its rate for 1986 until the end of the year.
- (c) It is assumed in the case of the married couple that the husband is the sole earner.
- (d) All thresholds take account of the universal minimum deductions for expenses, personal allowances, the deductability, where applicable, of social security contributions and other standard reliefs.
- (e) The thresholds have been converted to sterling at the purchasing power equivalent of sterling in Novermber 1985 (the latest date for which we have figures). The purchasing power equivalents are calculated on the basis of updated OECD figures.
Table 2 Rates of tax on bands of net taxable employment income in £
(i) France
Single person
Taxable income Rate per cent. 0–1,278 0 1,279–1,336 5 1,337–1,584 10 1,585–2,504 15 2,505–3,220 20 3,221–4,049 25 4,050– 4,894 30 4,895–5,647 35 5,648–9,408 40 9,409–12,940 45 12,941–15,304 50 15,306–17,411 55 17,412–19,734 60 Over 19,734 65
Married couple with no dependent children Taxable income Rate per cent. 0–2,555 0 2,556–2,670 5 2,671–3,167 10 3,168–5,009 15 5,010–6,439 20 6,440–8,090 25 8,091–9,788 30 9,789–11,293 35 11,294–18,816 40 18,817–25,879 45 25,880–30,611 50 30,612–34,821 55 34,822–39,468 60 Over 39,468 65 There are reductions in tax as follows:—
Tax liability up to £1,855: 8 per cent.
Tax liability up to £2,320: 7.99 per cent-3.01 per cent. (reducing)
Tax liability up to £2,780: 3 per cent.
602W
(ii) Japan Single person/married couple with no dependent children Taxable income Rate per cent. 0–1,225 10.5 1,226–2,941 12 2,942–4,902 14 4,903–7,353 17 7,354–9,804 21 9,805–14,706 25 14,707–19,608 30 19,609–24,510 35 24,511–29,412 40 29,413–36,765 45 36,766–49,020 50 49,021–73,529 55 73,530–122,549 60 122,550–196,078 65 Over 196,078 70
(iii) Canada Single person/married couple with no dependent children Taxable income Rate per cent. 0– 599 6 600– 1,198 16 1,199– 2,395 17 2,396– 3,593 18 3,594– 5,988 19 5,989– 8,383 20 8,384–10,778 23 10,779–16,766 25 16,767–28,742 30 Over 28,742 34 A surcharge is levied where the tax exceeds £2,750 and an additional surcharge of 5 per cent. is levied where tax exceeds £6,875.
(iv) United States of America Single person Taxable income Rate per cent. 0–1,333 0 1,334–1,973 11 1,974–2,554 12 2,555–3,769 14 3,770–4,930 15 4,931–6,263 16 6,264–7,484 18 7,485–8,704 20 8,705–10,559 23 10,560–13,634 26 13,635–16,710 30 16,711–19,785 34 19,786–24,075 38 24,076–32,081 42 32,082–47,457 48 Over 47,457 50
Married couple with no dependent children making a joint return Taxable income Rate per cent. 0– 1,973 0 1,974– 3,194 11 3,195– 4,409 12 4,410– 6,903 14 6,904– 9,285 16 9,286–11,720 18 11,721–14,274 22 14,275–17,349 25 17,350–20,419 28 20,420–26,570 33 26,571–34,812 38 34,813–49,662 42 49,663–63,468 45 63,469–94,220 49 Over 94,220 50