§ Mr. HASLAMasked the Chancellor of the Exchequer whether he will state, in reference to figures given in Cmd. Paper 224, 1919, the total amount of taxable income in respect of persons with incomes of £130 to £2,500 per annum, the percentage of the net produce of Income Tax thereon, the taxable income of persons with incomes of £2,500 and over per annum, and the percentage of the total Income Tax and Super-tax thereon?
Mr. CHAMBERLAINThe information asked for is as follows:
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Aggregate Taxable Income Percentage of Taxable Income paid in Income Tax, and Super-tax. £ Per cent. Individuals with incomes exceeding £130 and not exceeding £2,500 1,327,700,000 8.2 exceeding £2,,500 417,300,000 39.2 Reference is requested to the note attached to the following question.
§ Mr. HASLAMasked the Chancellor of the Exchequer whether he will state, with reference to the figures given in Cmd. Paper 224, 1919, the percentage the total sum of Income Tax and Super-tax bears in respect of each category of income given in the Return to the total taxable income given in each category?
Mr. CHAMBERLAINThe- information asked for is as follows:
Individuals with exceeding. Incomes not exceeding. Percentage of Taxable Income paid as Income Tax and Super-tax £ £ 130 160 0.5 160 200 1.6 200 250 3.0 250 300 4.8 300 400 6.2 400 500 8.1 500 600 11.4 600 700 13.5 700 800 15.4 800 900 16.2 900 1,000 16.5 1,000 1,500 20.4 1,500 2,000 23.9 2,000 2,500 27.7 Total. 130 2,500 8.2 2,500 5,000 32.0 5,000 10,000 36.8 10,000 15,000 41.2 15,000 20,000 43.2 20,000 25,000 44.2 25,000 30,000 45.2 30,000 40,000 45.9 40,000 50,000 46.5 50,000 75,000 47.3 75,000 100,000 48.0 100,000 — 48.4 Total 2,500 — 39.2 Total income distributed amongst Individuals 15.6 Note.—The figures of the Command Paper relate broadly to the Income Tax income of the year 1918–19. The per- 927W centages stated in the present answer as applying to the higher categories of income, those from £2,500 upwards, are somewhat lower than might be expected from a study of the effective rats of Income Tax and Super-tax in force for the year in question. This fact is due to several causes (which are brought out in the Command Paper), as follows: (a) The figures relate to income assessed to Income Tax in the year 1918–19 whether actually assessable for that year or for an earlier year. They do not include income assessable for 1918–19 but remaining unassessed at the end of that year. Thus a port on of the income dealt with was assessable not at the rates in force for 1918–19 but at lower rates in force for earlier years. (b) Allowance must be made for certain reliefs, notably the life insurance premium relief.
These causes also operate to reduce the percentages applying to the lower categories of income (up to £2,500). But in these casts the differential rates for earned and unearned income and—up to £800—the ordinary abatements and family allowances exercise a large influence upon the percentages, so that they cannot be effectively compared with the rates of tax imposed.