§ Mr. Norman Lamont
Between 1978–79 and 1988–89 the real take home pay of a couple with two children (one under 11, one 11 to 15) on average male earnings will have risen by 27 per cent. In the same period, the proportion of their earnings taken in income tax (net of child benefit) and NIC is estimated to have fallen from 20.6 per cent. to 20 per cent. If the 1978–79 tax regime had been kept in place and simply adjusted for inflation, the proportion of earnings taken in income tax and NIC taxes would have been 23.7 per cent.