§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer if he will update to include information from 1993–94 to 1997–98 the figures for the burden of direct and indirect taxation in the format used in his answer of 19 December 1994,Official Report, columns 944–50, taking account of changes made in the November 1995 Budget, listing separately the effects of the council tax and value added tax. [15106]
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Income tax, national insurance and indirect taxes at multiples of average earnings 1993–94 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single £ per week Gross income 179.55 269.33 359.10 538.65 718.20 1,077.30 1,436.40 1,795.50 2,513.70 3,591.00 7,182.00 Income tax and NICs 38.16 68.68 99.21 152.07 223.89 367.53 511.17 654.81 942.09 1,373.01 2,809.41 VAT 14.81 19.77 30.37 Other indirect taxes 19.56 24.10 33.80 Total excluding council tax 103.05 143.07 216.24 Percentage of earnings Income tax and NICs 21.3 25.5 27.6 28.2 31.2 34.1 35.6 36.5 37.5 38.2 39.1 VAT 5.5 5.5 5.6 Other indirect taxes 7.3 6.7 6.3 Total excluding council tax 38.3 39.8 40.1 Married, no children £ per week Gross income 179.55 269.33 359.10 538.65 718.20 1,077.30 1,436.40 1,795.50 2,513.70 3,591.00 7,182.00 Income tax and NICs 29.89 60.41 90.94 141.31 210.66 354.30 497.94 641.58 928.86 1,359.78 2,796.18 VAT 13.57 18.98 30.75 Other indirect taxes 21.93 26.55 36.62 Total excluding council tax 95.92 136.46 208.68 Percentage of earnings Income tax and NICs 16.6 22.4 25.3 26.2 29.3 32.9 34.7 35.7 37.0 37.9 38.9 VAT 5.0 5.3 5.7 Other indirect taxes 8.1 7.4 6.8 Total excluding council taxes 35.6 38.0 38.7 Married, two children £ per week Gross income 179.55 269.33 359.10 538.65 718.20 1,077.30 1,436.40 1,795.50 2,513.70 3,591.00 7,182.00 Income tax and NICs 11.79 42.31 72.84 123.21 192.56 336.20 479.84 623.48 910.76 1,341.68 2,778.08 VAT 13.44 19.56 32.89 Other indirect taxes 21.71 25.38 33.39 Total excluding council tax 77.47 117.78 189.49 Percentage of earnings Income tax and NICs 6.6 15.7 20.3 22.9 26.8 31.2 33.4 34.7 36.2 37.4 38.7 VAT 5.0 5.4 6.1 Other indirect taxes 8.1 7.1 6.2 Total excluding council tax 28.8 32.8 35.2
§ Mr. Jack[holding answer 14 February 1996]: A family on average earnings should be around £450 a year better off next year than this after tax and inflation, taking the total rise since 1978–79 to £4,500 a year. The tables show estimates of tax payments for various specimen households for the years 1993–94 to 1996–97. Changes in tax payments between years mainly reflect assumed growth in average earnings and should not be taken as the impact of Budget measures.
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Income tax, national insurance and indirect taxes at multiples of average earnings 1993–94 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Married, two earners, no children: Earnings split 60:40 £ per week Gross income 179.55 269.33 359.10 538.65 718.20 1,077.30 1,436.40 1,795.50 2,513.70 3,591.00 7,182.00 Income tax and NICs 11.11 37.86 68.05 129.10 189.16 304.58 434.55 578.19 865.47 1,296.39 2,732.79 VAT 15.64 21.53 33.25 Other indirect taxes 25.46 29.47 37.43 Total excluding council tax 78.96 119.05 199.78 Percentage of earnings Income tax and NICs 6.2 14.1 19.0 24.0 26.3 28.3 30.3 32.2 34.4 36.1 38.1 VAT 5.8 6.0 6.2 Other indirect taxes 9.5 8.2 6.9 Total excluding council tax 29.3 33.2 37.1 1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay class 1 NI contributions at the contracted-in rate. Child benefit is treated as a negative income tax in order to provide comparability with support given through child tax allowances.
2. Earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. Estimates of earnings in 1995–96 and 1996–97 are based on earnings growth assumptions of 3½ per cent. in 1995–96 and 4 per cent. in 1996–97.
3. Figures for indirect taxes include estimates of the intermediate taxes on households as well as the impact of taxes on final goods and services. Estimates of the impact of taxes on final goods and services assume that these taxes are fully incident on households. Estimates of the impact of intermediate taxes are based on the relation between intermediate production costs and final consumption derived using input-output techniques.
4. Estimates for most indirect taxes are based on equations derived from the 1985 Family Expenditure Survey uprated to later years using forecasts of aggregate tax receipts. Estimates of VAT on domestic fuel and power, airline passenger duty and insurance premium tax are based on equations using results from the 1991 and 1992 Family Expenditure Survey uprated using a similar methodology. All estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved.
5. Estimates of net council tax payments are based on analysis of the Family Expenditure Survey for the relevant year. Payment data for these years is affected by uncertainty about transitional relief, appeals and late payment. The estimates are therefore particularly uncertain and subject to a wide margin of error. No reliable estimates are available for 1993–94.
6. Estimates of indirect taxes are very approximate, even within the range for which figures are shown, because spending patterns vary widely between households with the same composition and income. The margin of error is even higher outside the range shown, and even illustrative estimates cannot be made. Because of sampling variation, there can be substantial differences between estimates obtained from Family Expenditure Surveys for different years.
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Income tax, national insurance and indirect taxes at multiples of average earnings 1994–95 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single £ per week Gross income 184.55 276.83 369.10 553.65 738.20 1,107.30 1,476.40 1,845.50 2,583.70 3,691.00 7,382.00 Income tax and NICs 40.59 72.88 105.18 162.15 235.97 383.61 531.25 678.89 974.17 1,417.09 2,893.49 VAT 15.94 21.09 32.06 Other indirect taxes 20.86 25.62 35.73 Total excluding council tax 109.68 151.89 229.95 Council tax 6.21 6.78 7.99 Percentage of earnings Income tax and NICs 22.0 26.3 28.5 29.3 32.0 34.6 36.0 36.8 37.7 38.4 39.2 VAT 5.8 5.7 5.8 Other indirect taxes 7.5 6.9 6.5 Total excluding council tax 39.6 41.2 41.5 Council tax 2.2 1.8 1.4 344W 345W
Income tax, national insurance and indirect taxes at multiples of average earnings 1994–95 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Married, no children £ per week Gross income 184.55 276.83 369.10 553.65 738.20 1,107.30 1,476.40 1,845.50 2,583.70 3,691.00 7,382.00 Income tax and NICs 33.97 66.27 98.56 155.53 229.35 376.99 524.63 672.27 967.55 1,410.47 2,886.87 VAT 14.67 20.28 32.21 Other indirect taxes 23.24 28.16 38.62 Total excluding council tax 104.18 119.13 188.29 Council tax 9.37 10.17 11.88 Percentage of earnings Income tax and NICs 18.4 23.9 26.7 28.1 31.1 34.0 35.5 36.4 37.4 38.2 39.1 VAT 5.3 5.5 5.8 Other indirect taxes 8.4 7.6 7.0 Total excluding council taxes 37.6 32.3 34.0 Council tax 3.4 2.8 2.1 Married, two children £ per week Gross income 184.55 276.83 369.10 553.65 738.20 1,107.30 1,476.40 1,845.50 2,583.70 3,691.00 7,382.00 Income tax and NICs 15.52 47.82 80.11 137.08 210.90 358.54 506.18 653.82 949.10 1,392.02 2,868.42 VAT 14.37 20.71 34.21 Other indirect taxes 23.15 26.95 35.04 Total excluding council tax 85.33 127.78 206.33 Council tax 7.29 8.12 9.89 Percentage of earnings Income tax and NICs 8.4 17.3 21.7 24.8 28.6 32.4 34.3 35.4 36.7 37.7 38.9 VAT 5.2 5.6 6.2 Other indirect taxes 8.4 7.3 6.3 Total excluding council tax 30.8 34.6 37.3 Council tax 2.6 2.2 1.8 Married, two earners, no children: Earnings split 60:40 £ per week Gross income 184.55 276.83 369.10 553.65 738.20 1,107.30 1,476.40 1,845.50 2,583.70 3,691.00 7,382.00 Income tax and NICs 13.13 42.92 74.56 139.15 202.45 329.55 465.32 612.96 908.24 1,351.16 2,827.56 VAT 16.75 22.89 35.06 Other indirect taxes 27.25 31.51 39.90 Total excluding council tax 86.92 128.96 214.11 Council tax 9.63 9.83 10.23 Percentage of earnings Income tax and NICs 7.1 15.5 20.2 25.1 27.4 29.8 31.5 33.2 35.2 36.6 38.3 VAT 6.0 6.2 6.3
Income tax, national insurance and indirect taxes at multiples of average earnings 1994–95 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Other indirect taxes 9.8 8.5 7.2 Total excluding council tax 31.4 34.9 38.7 Council tax 3.5 2.7 1.8 1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay class 1 NI contributions at the contracted-in rate. Child benefit is treated as a negative income tax in order to provide comparability with support given through child tax allowances.
2. Earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. Estimates of earnings in 1995–96 and 1996–97 are based on earnings growth assumptions of 3½ per cent. in 1995–96 and 4 per cent. in 1996–97.
3. Figures for indirect taxes include estimates of the intermediate taxes on households as well as the impact of taxes on final goods and services. Estimates of the impact of taxes on final goods and services assume that these taxes are fully incident on households. Estimates of the impact of intermediate taxes are based on the relation between intermediate production costs and final consumption derived using input-output techniques.
4. Estimates for most indirect taxes are based on equations derived from the 1985 Family Expenditure Survey uprated to later years using forecasts of aggregate tax receipts. Estimates of VAT on domestic fuel and power, airline passenger duty and insurance premium tax are based on equations using results from the 1991 and 1992 Family Expenditure Survey uprated using a similar methodology. All estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved.
5. Estimates of net council tax payments are based on analysis of the Family Expenditure Survey for the relevant year. Payment data for these years is affected by uncertainty about transitional relief, appeals and late payment. The estimates are therefore particularly uncertain and subject to a wide margin of error. No reliable estimates are available for 1993–94.
6. Estimates of indirect taxes are very approximate, even within the range for which figures are shown, because spending patterns vary widely between households with the same composition and income. The margin of error is even higher outside the range shown, and even illustrative estimates cannot be made. Because of sampling variation, there can be substantial differences between estimates obtained from Family Expenditure Surveys for different years.
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Income tax, national insurance and indirect taxes at multiples of average earnings 1995–96 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single £ per week Gross income 191.00 286.50 382.00 573.00 764.00 1,146.00 1,528.00 1,910.00 2,674.00 3,820.00 7,640.00 Income tax and NICs 42.19 75.61 109.04 168.27 244.67 397.47 550.27 703.07 1,008.67 1,467.07 2,995.07 VAT 15.86 21.01 31.94 Other indirect taxes 21.70 26.70 37.30 Total excluding council tax 113.17 156.75 237.51 Percentage of earnings Income tax and NICs 22.1 26.4 28.5 29.4 32.0 34.7 36.0 36.8 37.7 38.4 39.2 VAT 5.5 5.5 5.6 Other indirect taxes 7.6 7.0 6.5 Total excluding council tax 39.5 41.0 41.5 Married, no children £ per week Gross income 191.00 286.50 382.00 573.00 764.00 1,146.00 1,528.00 1,910.00 2,674.00 3,820.00 7,640.00 Income tax and NICs 37.22 70.65 104.07 163.31 239.71 392.51 545.31 698.11 1,003.71 1,462.11 2,990.11 VAT 14.34 19.94 31.84 Other indirect taxes 24.01 29.17 40.11 Total excluding council tax 109.00 153.18 235.26 Percentage of earnings Income tax and NICs 19.5 24.7 27.2 28.5 31.4 34.3 35.7 36.6 37.5 38.3 39.1 VAT 5.0 5.2 5.6 Other indirect taxes 8.4 7.6 7.0 Total excluding council taxes 38.0 40.1 41.1
Income tax, national insurance and indirect taxes at multiples of average earnings 1995–96 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Married, two children £ per week Gross income 191.00 286.50 382.00 573.00 764.00 1,146.00 1,528.00 1,910.00 2,674.00 3,820.00 7,640.00 Income tax and NICs 18.37 51.80 85.22 144.46 220.86 373.66 526.46 679.26 984.86 1,443.26 2,971.26 VAT 13.90 20.23 33.69 Other indirect taxes 23.80 27.86 36.44 Total excluding council tax 89.50 133.31 214.59 Percentage of earnings Income tax and NICs 9.6 18.1 22.3 25.2 28.9 32.6 34.5 35.6 36.8 37.8 38.9 VAT 4.9 5.3 5.9 Other indirect taxes 8.3 7.3 6.4 Total excluding council tax 31.2 34.9 37.5 Married, two earners, no children: Earnings split 60:40 £ per week Gross income 191.00 286.50 382.00 573.00 764.00 1,146.00 1,528.00 1,910.00 2,674.00 3,820.00 7,640.00 Income tax and NICs 15.94 46.72 79.41 146.26 211.27 343.09 484.38 637.18 942.78 1,401.18 2,929.18 VAT 16.34 22.49 34.64 Other indirect taxes 28.17 32.60 41.34 Total excluding council tax 91.23 134.50 222.24 Percentage of earnings Income tax and NICs 8.3 16.3 20.8 25.5 27.7 29.9 31.7 33.4 35.3 36.7 38.3 VAT 5.7 5.9 6.0 Other indirect taxes 9.8 8.5 7.2 Total excluding council tax 31.8 35.2 38.8 1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay Class 1 NI contributions at the contracted-in rate. Child benefit is treated as a negative income tax in order to provide comparability with support given through child tax allowances.
2. Earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. Estimates of earnings in 1995–96 and 1996–97 are based on earnings growth assumptions of 3½ per cent. in 1995–96 and 4 per cent. in 1996–97.
3. Figures for indirect taxes include estimates of the intermediate taxes on households as well as the impact of taxes on final goods and services. Estimates of the impact of taxes on final goods and services assume that these taxes are fully incident on households. Estimates of the impact of intermediate taxes are based on the relation between intermediate production costs and final consumption derived using input-output techniques.
4. Estimates for most indirect taxes are based on equations derived from the 1985 Family Expenditure Survey uprated to later years using forecasts of aggregate tax receipts. Estimates of VAT on domestic fuel and power, airline passenger duty and insurance premium tax are based on equations using results from the 1991 and 1992 Family Expenditure Survey uprated using a similar methodology. All estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved.
5. Estimates of net council tax payments are based on analysis of the Family Expenditure Survey for the relevant year. Payment data for these years is affected by uncertainty about transitional relief, appeals and late payment. The estimates are therefore particularly uncertain and subject to a wide margin of error. No reliable estimates are available for 1993–94.
6. Estimates of indirect taxes are very approximate, even within the range for which figures are shown, because spending patterns vary widely between households with the same composition and income. The margin of error is even higher outside the range shown, and even illustrative estimates cannot be made. Because of sampling variation, there can be substantial differences between estimates obtained from Family Expenditure Surveys for different years.
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Income tax, national insurance and indirect taxes at multiples of average earnings 1996–97 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single £ per week Gross income 198.65 297.98 397.30 595.95 794.60 1,191.90 1,589.20 1,986.50 2,781.10 3,973.00 7,946.00 Income tax and NICs 42.28 76.05 109.83 168.58 248.04 406.96 565.88 724.80 1,042.64 1,519.40 3,108.60 VAT 16.84 22.35 34.11 Other indirect taxes 23.11 28.51 40.00 Total excluding council tax 116.01 160.68 242.68 Percentage of earnings Income tax and NICs 21.3 25.5 27.6 28.3 31.2 34.1 35.6 36.5 37.5 38.2 39.1 VAT 5.7 5.6 5.7 Other indirect taxes 7.8 7.2 6.7 Total excluding council tax 38.9 40.4 40.7 Married, no children £ per week Gross income 198.65 297.98 397.30 595.95 794.60 1,191.90 1,589.20 1,986.50 2,781.10 3,973.00 7,946.00 Income tax and NICs 37.12 70.89 104.66 163.41 242.87 401.79 560.71 719.63 1,037.47 1,514.23 3,103.43 VAT 15.17 21.16 33.95 Other indirect taxes 25.51 31.07 42.91 Total excluding council tax 111.57 156.89 240.27 Percentage of earnings Income tax and NICs 18.7 23.8 26.3 27.4 30.6 33.7 35.3 36.2 37.3 38.1 39.1 VAT 5.1 5.3 5.7 Other indirect taxes 8.6 7.8 7.2 Total excluding council tax 37.4 39.5 40.3 Married, two children £ per week Gross income 198.65 297.98 397.30 595.95 794.60 1,191.90 1,589.20 1,986.50 2,781.10 3,973.00 7,946.00 Income tax and NICs 17.52 51.29 85.06 143.81 223.27 382.19 541.11 700.03 1,017.87 1,494.63 3,083.83 VAT 14.62 21.40 35.87 Other indirect taxes 25.35 29.76 39.19 Total excluding council tax 91.25 136.22 218.87 Percentage of earnings Income tax and NICs 8.8 17.2 21.4 24.1 28.1 32.1 34.0 35.2 36.6 37.6 38.8 VAT 4.9 5.4 6.0 Other indirect taxes 8.5 7.5 6.6 Total excluding council tax 30.6 34.3 36.7 Married, two earners, no children: Earnings split 60:40 £ per week Gross income 198.65 297.98 397.30 595.95 794.60 1,191.90 1,589.20 1,986.50 2,781.10 3,973.00 7,946.00 Income tax and NICs 15.71 46.76 79.40 146.95 212.31 345.75 490.91 649.83 967.67 1,444.43 3,033.63 VAT 17.18 23.79 36.78 Other indirect taxes 30.00 34.79 44.23 Total excluding council tax 93.94 137.99 227.96
Income tax, national insurance and indirect taxes at multiples of average earnings 1996–97 Percentage of male average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Percentage of earnings Income tax and NICs 7.9 15.7 20.0 24.7 26.7 29.0 30.9 32.7 34.8 36.4 38.2 VAT 5.8 6.0 6.2 Other indirect taxes 10.1 8.8 7.4 Total excluding council tax 31.5 34.7 38.3 1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay Class 1 NI contributions at the contracted-in rate. Child benefit is treated as a negative income tax in order to provide comparability with support given through child tax allowances.
2. Earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. Estimates of earnings in 1995–96 and 1996–97 are based on earnings growth assumptions of 3½ per cent. in 1995–96 and 4 per cent. in 1996–97.
3. Figures for indirect taxes include estimates of the intermediate taxes on households as well as the impact of taxes on final goods and services. Estimates of the impact of taxes on final goods and services assume that these taxes are fully incident on households. Estimates of the impact of intermediate taxes are based on the relation between intermediate production costs and final consumption derived using input-output techniques.
4. Estimates for most indirect taxes are based on equations derived from the 1985 Family Expenditure Survey uprated to later years using forecasts of aggregate tax receipts. Estimates of VAT on domestic fuel and power, airline passenger duty and insurance premium tax are based on equations using results from the 1991 and 1992 Family Expenditure Survey uprated using a similar methodology. All estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved.
5. Estimates of net council tax payments are based on analysis of the Family Expenditure Survey for the relevant year. Payment data for these years is affected by uncertainty about transitional relief, appeals and late payment. The estimates are therefore particularly uncertain and subject to a wide margin of error. No reliable estimates are available for 1993–94.
6. Estimates of indirect taxes are very approximate, even within the range for which figures are shown, because spending patterns vary widely between households with the same composition and income. The margin of error is even higher outside the range shown, and even illustrative estimates cannot be made. Because of sampling variation, there can be substantial differences between estimates obtained from Family Expenditure Surveys for different years.