§ 46. Mr. Chapman
asked the Chancellor of the Exchequer whether he has commissioned any studies into the reasons why an increasing proportion of income tax revenue is paid by the 10 per cent. of taxpayers with the highest incomes; and if he will make a statement.
§ Mr. Frank Field
asked the Chancellor of the Exchequer what is the total amount of income tax collected from unemployed people for each year since 1982 in Great Britain.
§ Mr. Moore
I assume that the hon. Member has in mind the yield of income tax arising from taxation of benefits paid to unemployed people. The yield, since these benefits were brought within the charge to income tax, is now estimated to have been of the order of £600 million in each full year. These estimates are subject to a wide margin of error and may be revised in the light of further information from the survey of personal incomes.
§ Mr. Ralph Howell
asked the Chancellor of the Exchequer if he will publish the latest figures available on the gross income in pound sterling equivalent at which income tax on earned income becomes payable at 29 per cent. and 50 per cent. in the United Kingdom, the United States of America, France, Germany and Japan, for (a) a single person, (b) a single-wage married couple and (c) a single-wage couple with two children.
§ 5. Mr. Moore
The information requested is given in the tables: 555W
Table 1 Gross income in £ sterling at which income tax on employment income becomes payable at 29 per cent. Single person Married couple Married couple with two dependent children United Kingdom 2,336 3,656 3,656 United States of America 9,285 14,900 16,260 (30) (28) France 13,095 18,520 21,515 (28) (28) (28.8) Germany 6,640 12,920 14,030 Japan 14,700 14,700 16,510 (29.7) (29.7) (29.7)
Table 2 Gross income in £ sterling at which income tax on employment income becomes payable at 50 per cent. Single person Married couple Married couple with two dependent children United Kingdom 27,736 29,056 29,056 United States of America 25,240 53,365 54,110 (48.4) (51.05) (51.05) France 51,435 51,650 51,650 (52) (55) (55) Germany 15,670 30,970 32,090 Japan 32,770 33,630 35,340 (52.25) (52.25) (52.25)
1. The figures relate to income of the year 1986 (1986–87 in the case of the United Kingdom) except for France where they relate to 1985, as France does not fix its 1986 rates until the end of the year.
2. Conversions to sterling were made at the purchasing power equivalent of sterling in November 1985 (the latest date for which we have figures). The purchasing power equivalents are calculated on the basis of updated OECD figures. Purchasing power parities give a better indication of real values than exchange rates as they are calculated by reference to prices of the same basket of commodities.
3. It is assumed that the income of the married couple is wholly employment income of the husband.
4. Personal reliefs (including child tax allowances, where given, but not child benefits) employment income reliefs and other standard reliefs have been taken into account, as well as income tax relief for social security contributions in certain countries.
- (i) The rates of 30 per cent. and 50 per cent. in the tables are actual tax rates, that is, nominal rates adjusted where appropriate for the reliefs mentioned above.
- (ii) Where the actual tax rate is never precisely 30 per cent. or 50 per cent., the rate applicable to the income level in the table is given in brackets.
6. The figures in the tables reflect national taxes and, where applicable (United States of America and Japan), local income taxes at typical rates. The inclusion of local income taxes gives a more appropriate comparison.