§ Mr. Greg KnightTo ask the Chancellor of the Exchequer what information he has about the starting rates and top rates of income tax and the level of gross income at which those rates become payable in(a) Canada, (b) France, (c) Germany, (d) Italy, (e) Japan and (f) the United States of America, for a married couple with no children.
§ Mr. Norman LamontThe information requested is given in the table: 567W
Country Starting rate Per cent. Starting rate threshold Top rate Per cent. Top rate threshold £ £ Canada 25.5 5,003 43.5 25,000 France 12.8 6,698 56.8 53,463 Germany 22 3,439 56 65,670 Italy 22 3,358 62 253,924 Japan 17.5 4,286 78 152,607 United States of America 15 5,086 34.7 22,086 United Kingdom 25 4,096 40 19,301 Notes:
1. The figures relate to 1988 (1988–89 in the case of the United Kingdom).
2. It is assumed that the income of the married couple is wholly employment income of the husband.
3. Conversions to sterling were made at the purchasing power equivalent of sterling in July 1987 (the latest date for which we have figures). The purchasing power equivalents are calculated on the basis of updating 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.
4. In determining gross income levels, personal reliefs, employment income reliefs and other standard reliefs have been taken into account. Where social security contributions are deductible in computing taxable income they have also been taken into account (France, Germany, Italy, Japan).
5. The figures in the tables reflect national taxes and, where applicable (Canada, Japan and the United States), local income taxes at typical rates.