§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) what was the(a) upper and (b) decile income for tax purposes in 1963–64, 1973–74, 1978–79 and 1993–94 and forecast 1995–96; what was the percentage of the income in each case of the amount payable in (i) direct and (ii) indirect tax, including 1070W national insurance, health, public sector rents and all other charges less child benefit, by a (iii) two-person household with no dependants and (iv) a two-person household with two dependent children; and what are his estimates for 1994–95;
(2) what was the median income for tax purposes in 1963–64, 1973–74, 1978–79, 1993–94 and forecast 1995–96; what was the percentage of the income in each case of the amount payable in (a) direct and (b) indirect tax, including national insurance, health, public sector rents and all other charges less child benefit, by a (i) two-person household with no dependants and (ii) a two-person household with two dependent children; and what are his estimates for 1994–95.
§ Sir George YoungInformation is not available in the form requested. A certain amount of information on taxes paid and benefits received by broad groups of households is published in an annual article in "Economic Trends" entitled "Effects of taxes and benefits upon household income". The latest article appeared in the January 1994 edition of "Economic Trends", a copy of which is available in the Library. The results of this analysis are not designed for comparison between years because of changes in definition over time, particularly pre and post-1987 when a major revision to the methodology was adopted.
§ Mr. ChisholmTo ask the Chancellor of the Exchequer what tax rate for income over £50,000 would have to be imposed in order to raise an additional £800 million of revenue.
§ Sir George Young[holding answer 13 December 1994]: An income tax rate of 47p on taxable incomes over £50,000 would raise about £800 million in 1995–96 and £1.3 billion in a full year. These estimates do not allow for any behavioural changes that might result from the introduction of the new tax rate and do not include capital gains tax.