§ Mr. AllenTo ask the Secretary of State for Social Security what is the top marginal tax rate possible(a) for a person in work paying income tax and (b) for a person at work on family credit and in receipt of housing benefit and community charge benefit.
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§ Mr. JackThe same tax regime is applicable to all those liable to pay income tax, irrespective of whether they are also eligible for benefits. For those receiving in-work income-related benefits, however, the highest likely marginal tax rate would be 25 per cent. The current top marginal tax rate for any payer is 40 per cent. compared with 83 per cent. in 1979.