Taxation (Hansard, 9 July 1963)

§ Mr. W. Clark
asked the Chancellor of the Exchequer how much of the Gross National Product was taken by taxation in the United Kingdom and what information he has on this point from the Organisation for Economic Co-operation and Development with regard to France, United States of America, Belgium, West Germany, Italy, and the Netherlands.

§ Mr. Barber
The latest available figures are given in the table below. Social security contributions, both by employers and by employees, are included in view of the wide differences between countries in the extent to which social security benefits are financed by specific contributions or from general taxation. In accordance with the O.E.C.D. practice, death duties are regarded as capital transfers and are excluded from the figures given in the table.
rate of tax paid by the average man on earnings of £800, £1,500, £3,000 and 129W £10,000 in 1961, and what information he has on this point from the Organisation for Economic Co-operation and Development with regard to France, the United States, Belgium, West Germany, Italy and the Netherlands.

§ Mr. Barber
The table below gives the margin rates of tax payable for 1961–62 in the United Kingdom on salaries earned by a single man, a married man with no children and a married man

Country Salary Exchange Rate assumed Percentage Marginal Rate

Single Married with no child Married with two children

£

United Kingdom … … 800 — 30.1 30.1 16.5

1,500 30.1 30.1 30.1

3,000 30.1 30.1 30.1

10,000 71.2 71.2 71.2

France … … … 800 13.75 NF=£1 15.1 7.6 7.6

1,500 26.6 19.4 15.1

3,000 33.8 25.9 18.7

10,000 48.9 41.4 41.4

United States of America 800 $2.80=£1 20 20 Nil

1,500 22 20 20

3,000 30 22 22

10,000 62 43 43

Belgium … … … 800 140 B.Fr=£1 20.7 19.8 17.1

1,500 23.4 22.5 19.8

3,000 50.0 50.0 50.0

10,000 65.0 65.0 65.0

West Germany … … 800 11.20 DM=£1 20 20 20

1,500 33.3 20 20

3,000 40 30 30

10,000 53 45 45

Italy … … … 800 1,740 l.=£1 13 13 13

1,500 15 15 15

3,000 18 18 18

10,000 24.5 24.5 24.5

Netherlands … … 800 10.20 f.=£1 32.5 24.2 20.8

1,500 46.7 39.2 36.7

3,000 60.8 54.2 54.2

10,000 70.0 70.0 70.0

Country	Salary	Exchange Rate assumed	Percentage Marginal Rate
Single	Married with no child	Married with two children
				£
United Kingdom	…	…	800	—	30.1	30.1	16.5
				1,500		30.1	30.1	30.1
				3,000		30.1	30.1	30.1
				10,000		71.2	71.2	71.2
France	…	…	…	800	13.75 NF=£1	15.1	7.6	7.6
				1,500		26.6	19.4	15.1
				3,000		33.8	25.9	18.7
				10,000		48.9	41.4	41.4
United States of America	800	$2.80=£1	20	20	Nil
				1,500		22	20	20
				3,000		30	22	22
				10,000		62	43	43
Belgium	…	…	…	800	140 B.Fr=£1	20.7	19.8	17.1
				1,500		23.4	22.5	19.8
				3,000		50.0	50.0	50.0
				10,000		65.0	65.0	65.0
West Germany	…	…	800	11.20 DM=£1	20	20	20
				1,500		33.3	20	20
				3,000		40	30	30
				10,000		53	45	45
Italy	…	…	…	800	1,740 l.=£1	13	13	13
				1,500		15	15	15
				3,000		18	18	18
				10,000		24.5	24.5	24.5
Netherlands	…	…	800	10.20 f.=£1	32.5	24.2	20.8
				1,500		46.7	39.2	36.7
				3,000		60.8	54.2	54.2
				10,000		70.0	70.0	70.0