§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the percentage of the increase in tax relief in 1988 for people of working age which will go to two-earner married couples; and what is the corresponding figure in the case of his proposals for separate taxation of men and women on the present tax basis.
§ Mr. Norman LamontIt is estimated that the 1988 Budget increased income tax allowances for taxpayers of working age by £5½ billion, of which 49 per cent. was for married couples where the wife was earning. The corresponding figures if the system of independent taxation of husband and wife were in place would be £5½billion and 47 per cent. The estimates are based on the 1985–86 survey of personal incomes projected to 1988–89, and are provisional. They take no account of possible behavioural changes on the introduction of independent taxation.
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§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) whether he has come to a decision on the option in paragraph 4.16 of Cmnd. 9756 of restricting the additional personal income tax allowance to those in receipt of one-parent and other appropriate benefits;and if he will publish in theOfficial Report a table showing what the effect of such a change would be in terms of the number of allowances claimed and the savings to the revenue;
(2) if he has come to a decision on the option in paragraph 4.15 of Cmnd. 9756 of converting the additional personal income tax allowance into increased social security provision; and if he will provide an estimate of (a) the amount of revenue which could be transferred to the social security budget in this way and (b) what increase in benefits would be required to ensure that nobody is worse off as a result of the change;
(3) what is his estimate of the amount of the mortgage taken out by the median mortgagee claiming mortgage interest relief, the increase since May in the rate of interest, the amount of interest payable in a full year, and the total amount of relief at the standard rate payable in a full year at the standard rate of income tax;
(4) what was the economic case for reducing income tax on investment income in the case of those with an income in excess of the ceiling below which there is an entitlement to income support; and if he will publish in the Official Report an estimate of the saving to the revenue from increasing the tax on investment income by eight percentage points;
(5) what is the percentage of the increase in tax relief in 1988 for people of working age which will go to two-earner married couples; and what is the corresponding figure in the case of his proposals for separate taxation of men and women on the present tax basis.
§ Mr. Norman LamontThese questions are duplicates of questions tabled for answer on Monday 28 November. I have nothing to add to the answers I gave in reply to those questions.
§ Mr. Frank FieldTo ask the Chancellor of the Exchequer what would be the cost of lowering the standard rate of tax to 20p.
§ Mr. Norman LamontI refer the hon. Member to the reply I gave to the hon. Member for Great Grimsby (Mr. Mitchell) on 5 December, at column53.