§ 42. Mr. Grimondasked the Chancellor of the Exchequer whether he is aware of the low level of earnings at which workers with small families are frequently liable to income tax; and what steps he will take to remedy this.
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§ Mr. HigginsLast year's increase in the income tax child allowances raised the tax threshold of families with children. The Chancellor will, as usual, be reviewing personal taxation before the Budget.
§ 55. Mr. Kenneth Bakerasked the Chancellor of the Exchequer what was the increase in the yield of income tax in the year 1970–71.
§ Mr. HigginsThe Consolidated Fund receipts of income tax rose by £823 million (17 per cent.) compared with 1969–70.
§ Mr. Meacherasked the Chancellor of the Exchequer what estimate he has made of the cost of implementing a £325 minimum earned income allowance in replacement of the two-ninths earned income relief under the old, non-unified system.
§ Mr. Patrick JenkinAbout £650 million for a full year, on the assumption that taxpayers remain entitled to two-ninths earned income relief on incomes about £1,462 per annum (the level where two-ninths produces £325).
§ Mr. Meacherasked the Chancellor of the Exchequer what could be the cost of increasing family allowances, respectively, to all children to £2 per week and £2 to the second and subsequent children plus £1 for the first child, respectively, with clawback and without clawback.
§ Mr. Patrick JenkinIf the hon. Member means to recoup the whole of the increases proposed by reducing personal allowances then the cost would be in the region of £75 million and £50 million, respectively, since the full benefit would accrue only to those below the new tax threshold. If the hon. Member does not wish to recoup in this way, the gross costs are £1,130 million and £760 million, respectively, for Great Britain for the full year 1971–72.