§ Mr. Maurice Macmillanasked the Chancellor of the Exchequer (1) what are the exact personal circumstances and precise conditions that would be met by an individual earning £15,000 per year in order that his effective rate of Income and Surtax combined be 53 per cent.; what proportion of this effective rate is attributable to Income Tax and Surtax, respectively; and what would be the effective rate of Income Tax. of Surtax and of both combined for an individual in exactly the same circumstances earning £5,000, £7,500, £10,000 and £12,500 per year, respectively;
(2) on what basis he calculates that the effective rate of tax on a £15,000 a year man is 53 per cent. and what would be the effective rate of tax, calculated on the same basis for an individual in 216W similar circumstances earning £5,000, £7,500, £10,000 and £12,500 per year, respectively.
§ Mr. MacDermotThe basis for this calculation was a married man with two children under 11 with a total income (wholly earned) of £15,000 a year; and it was assumed that he was entitled to earned income reliefs and the personal allowances appropriate to the personal circumstances stated. At present rates of tax the effective rates asked for are as follows:—
Total earned income Effective rate of income tax Effective rate of surtax Total effective rate of tax £ per cent. per cent. per cent. 5,000 27.4 — 27.4 7,500 30.5 3.5 34.0 10,000 32.1 8.2 40.3 12,500 33.9 13.3 47.2 15,000 35.1 17.7 52.8