After-Tax Returns on Securities (Hansard, 26 March 1970)

§ Mr. David Howell
asked the Chancellor of the Exchequer (1) what rate of interest he estimates to be needed to produce a 0 per cent. real after-tax return on a security, assuming that real capital values are maintained out of post-tax interest and that the rate of inflation is 4.3 per cent., and assuming a rate of tax of 8s. 3d. in the £ sterling;
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(2) what rate of interest he estimates to be needed to produce a 3 per cent. real after-tax return on a security, assuming that real capital values are maintained out of post-tax interest and that the rate of inflation is 4.3 per cent., and assuming a rate of tax of 8s. 3d. in the £ sterling;
(3) what rate of interest he estimates to be needed to produce a 2 per cent. after-tax return on a security, assuming that real capital values are maintained out of post-tax interest and that the rate of inflation is 4.3 per cent., and assuming a rate of tax of 8s. 3d. in the £ sterling.

§ Mr. Taverne
Approximately £7 6s. 0d. per cent.; £12 13s. 0d. per cent. and £10 17s. 0d. per cent. respectively.

TAXATION AS A PERCENTAGE OF GROSS NATIONAL PRODUCT AT FACTOR COST

1951 1964 1968 1969^*

Central government taxes on income … 14.9 12.0 15.3† 16.4†

Central government taxes on expenditure … 14.7 11.5 14.7 16.1

Central government taxes on capital … 1.5 1.0 1.2 1.6

National insurance, etc. contributions … 3.5 4.9 5.9 5.8

Local authority rates … 2.8 3.7 4.3 4.4

Total … 37.4 33.1 41.4† 44.3†

^* Provisional estimates.

† Including the effect of the reductions in tax allowances following the introduction of investment grants and increased rates of family allowances.

§ Mr. David Howell
asked the Chancellor of the Exchequer what proportion of total personal income was taken in 1951, 1964, 1968, and in whatever portion of 1969 for which there are figures, by personal direct taxation, and by per-

AS A PERCENTAGE OF TOTAL PERSONAL INCOME

1951 1964 1968 1969^*

Taxes on income paid by the personal sector 9.7 10.1 12.6 13.6

National insurarance, etc. contributions from insured persons† 11.8 12.9 15.6 .5

^* First three quarters, seasonally adjusted.

† Including contributions paid by self-employed and non-employed persons.

TAXATION AS A PERCENTAGE OF GROSS NATIONAL PRODUCT AT FACTOR COST
		1951	1964	1968	1969^*
Central government taxes on income	…	14.9	12.0	15.3†	16.4†
Central government taxes on expenditure	…	14.7	11.5	14.7	16.1
Central government taxes on capital	…	1.5	1.0	1.2	1.6
National insurance, etc. contributions	…	3.5	4.9	5.9	5.8
Local authority rates	…	2.8	3.7	4.3	4.4
Total	…	37.4	33.1	41.4†	44.3†
^* Provisional estimates.
† Including the effect of the reductions in tax allowances following the introduction of investment grants and increased rates of family allowances.

AS A PERCENTAGE OF TOTAL PERSONAL INCOME
	1951	1964	1968	1969^*
Taxes on income paid by the personal sector	9.7	10.1	12.6	13.6
National insurarance, etc. contributions from insured persons†	11.8	12.9	15.6	.5
^* First three quarters, seasonally adjusted.
† Including contributions paid by self-employed and non-employed persons.