§ Mr. Jacques ArnoldTo ask the Chancellor of the Exchequer if he will list the changes which have taken place in the standard rate of income tax since 1978–79; and if he will make a statement.
§ Mr. MaudeSince 1979 we have reduced the basic rate in stages from 33 to 25 pet cent. We will move towards a rate of 20 per cent. when it is prudent to do so.
§ Mr. Harry GreenwayTo ask the Chancellor of the Exchequer how much a cut of 1p in the pound off income tax would cost; how much the raising of the top rate of tax to 50 per cent. would yield to the revenue; and if he will make a statement.
§ Mr. MaudeAt 1992–93 levels of income a 1p reduction in the basic rate of income tax would cost about £1.95 billion in a full year. Raising the higher rate of income tax to 50 per cent. would yield about £3.4 billion in a full year.
These estimates, however, do not allow for any behavioural effects that might result from such changes to the tax system and do not include capital gains tax.
§ Mr. Ralph HowellTo ask the Chancellor of the Exchequer (1) what would be the loss of revenue from raising the income tax threshold for all income tax payers to £100 per week;
(2) how many extra persons would be exempt from income tax if the tax threshold were raised to £100 per week.
§ Mr. MaudeAt 1992–93 levels of income, the cost of raising the personal allowance to £5,200, compared with the amount due under the illustrative assumption of 4 per cent. indexation given in the Autumn Statement 1991, would be about £10½ billion. About 3.8 million people would be taken out of tax by this change.