§ Mr. David Steelasked the Chancellor of the Exchequer if he will print in the OFFICIAL REPORT what the tax threshold was as a percentage of average earnings for: (a) a single man, (b) a married man, (c) a married man with two children, and (d) a married man with four children for 1959, 1964, 1970 and the latest available date.
§ Mr. NottThe figures are:
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AVERAGE RATE OF TAX PERCENTAGE 1970–71 1972–73 Earnings £ A B A B 1,000 … 6.4 6.6 Nil Nil 1,500 … 14.7 15.1 8.4 8.7 2,000 … 18.9 19.4 13.7 14.0 2,500 … 21.5 21.9 16.9 17.2 In column A, the tax payable is expressed as a percentage of earnings plus Family Allowance, allowing for clawback. In column B, it is expressed as a percentage of earnings.
§ Mr. Peter Reesasked the Chancellor of the Exchequer what is the average rate of tax for a married man with two infant children earning £1,000, £1,500, £2,000 and £2,500, respectively, at current
AVERAGE RATES OF TAX (PERCENTAGE) Earnings £1,000 £1,500 £2,000 £2,500 Notes USA … Nil Nil 1.8 4.4 Federal tax only Germany … Nil 3.4 6.6 8.5 France … Nil Nil 1.2 3.0 Australia … 2.0 5.1 8.2 11.1 New Zealand … 10.0 14.8 18.7 22.5 All employment income United Kingdom … Nil 8.7 14.0 17.2
§ Mr. Peter Reesasked the Chancellor of the Exchequer what is the maximum marginal tax rate on earned income, and at what income level it is reached for a married man with two children under 11
Country Maximum marginal tax tate Income level at which maximum marginal rate is reached Notes (Per cent.) (£) UK … … 75.4 20,870 USA … … 50.0 19,800 Federal tax only Canada … … 47.0 25,600 Federal tax only (Provincial tax 30 per cent. plus of Federal tax) Netherlands … … 71.0 19,500 France … … 60.0 23,200 (a) Earned income other than employment income 43.2 32,200 (b) Employment income Proposed 10 per cent. surcharge included Germany … … 59.9 31,900 Australia … … 66.7 23,300 New Zealand … … 50.0 6,800 At current exchange rates