§ Mr. Meacherasked the Chancellor of the Exchequer what is his estimate of the annual Exchequer gains or losses on the abolition of both family allowances and child tax allowances and their replacement by a child endowment cash benefit, for each child including the first, of, respectively, £1.50, £1.75, £2.00, £2.25 and £2.50 per week, taxed or tax-free, respectively, in each case.
§ Mr. Patrick JenkinAssuming that the endowment would be paid to all those children now qualifying for the child tax544W allowance the estimated figures for 1971–72 are approximately as follows:
COST (-) OR YIELD (+) Weekly Benefit Benefit not taxed Benefit taxed £p £m. £m. 1.50 -100 + 200 1.75 -300 + 75 2.00 -500 - 75 2.25 -700 -225 2.50 -900 -375
§ Mr. Meacherasked the Chancellor of the Exchequer (1) what is his estimate of the annual gains or losses to, respectively, single persons, married couples without children, married couples with two children and married couples with four children, with income in each case, respectively, of £750, £1,000, £2,000, £3,000, £4,000, £5,000, £10,000 and £20,000 on the raising of the single person's allowance to £700 and the married man's allowance to £1,000, the wife's earnings allowance being unchanged, on the abolition of tax allowances and on the levying of income tax at 25 per cent. on income below £1,000 and at 5 per cent. higher rates on each successive £1,000 block of income, stabilising at 75 per cent. beyond £10,000;
(2) what is his estimate of the annual Exchequer gains or losses regarding, respectively, single persons, married couples without children, and married couples with one, two, three, and four or more children, respectively, on raising the single person's allowance to £700 and the married man's allowance to £1,000, the wife's earnings allowance being unchanged, on the abolition of child tax allowances, and on the levying of income tax at 25 per cent. on income below £1,000 and at 5 per cent. higher rates on each successive £1,000 block of income, subject to a 75 per cent. ceiling beyond £10,000.
§ Mr. Patrick JenkinI am not sure what the hon. Member has in mind. If he will write to me saying whether he is thinking of a type of unified tax system as set out in the Finance Act, 1971, and, if so, precisely how he would deal with such things as the differential between earned and investment income, the claw-back and the other allowances and reliefs, I will try and supply him with the figures asked for and an estimate of the cost.