HC Deb 28 February 1958 vol 583 cc85-6W
Mr. Russell

asked the Chancellor of the Exchequer if he will publish in the OFFICIAL REPORT a table showing how much out of every £500 a year increase in earned income between £2,000 and £5,000 a year is taken by the Exchequer in Income Tax and Surtax.

Mr. Simon

The following are the figures:

TAX ON AN INCREASE OF £500
Original Income Single man Married man with 2 children under 11
Tax on £500 increase Tax on £500 increase
£ £ s. d. £ s. d.
2,000 … 215 5 7 185 5 7
2,500 … 227 15 7 220 5 7
3,000 … 252 15 7 237 15 7
3,500 … 252 15 7 252 15 7
4,000 … 301 3 1 286 3 1
4,500 … 301 7 9 301 7 9

Mr. Benn

asked the Chancellor of the Exchequer what would be the estimated cost to the revenue of raising the allowances for Income Tax so as to exempt completely all persons paying less than £50 per annum in Income Tax and to reduce the Income Tax paid by all those paying more than £50, by £50.

Mr. Simon

£650 million, assuming the benefit extended to wives' earnings.

Mr. Benn

asked the Chancellor of the Exchequer how many persons pay more than £50 a year in Income Tax; how many pay less; and how many are altogether exempted by the operation of existing allowances.

Mr. Simon

Out of the total of 20¾ million taxpayers 7¾ million pay more than £50 a year in income tax and 13 million less. Working wives are counted separately.