§ Mr. David Nicholson
To ask the Chancellor of the Exchequer what would be the annual cost of introducing a 35 per cent. income tax rate for all income(a) between £23,700 and £26,000, (b) between £23,700 and £30,000, and (c) between £23,700 and £35,000; and what would be 206W the annual revenue from introducing a 50 per cent. rate on (i) all income over £50,000, (ii) all income over £60,000 and (iii) all income over £70,000.
§ Mr. Dorrell
The latest estimates are as follows:
Band of taxable income over which 35 per cent. Rate would be charged Revenue cost in full year at 1992–93 income levels £ £million 23,700 to 26,000 170 23,700 to 30,000 400 23,700 to 35,000 600
Level of taxable income above which 50 per cent. Rate would be charged Revenue yield in a full year at 1992–93 income levels £ £ million 50,000 1,360 60,000 1,120 70,000 950
The estimates do not allow for any behavioural effect that might result from such changes to the tax system and do not include capital gains tax.