Income Tax (Hansard, 8 April 1974)

§ Mr. MacGregor
asked the Chancellor of the Exchequer on what assumptions for increases in incomes he has based his estimates for the 1974-75 tax yields on income tax and surtax, as outlined in the Financial Statement and Budget Report, Table 9.

§ Dr. Gilbert
It has never been the practice to state these assumptions.

§ Mr. Trotter
asked the Chancellor of the Exchequer what are the highest rates of personal tax charged on (a) earned and (b) unearned incomes in the following countries: France, Germany, Holland, Italy, Sweden, the United Kingdom and the United States of America.

§ Dr. Gilbert
It is difficult to make comparisons with other countries of what we would describe as the top marginal rate but subject to many qualifications the information is as follows:

Employment income Per cent. Other earned income Per cent. Investment income Per cent.

France … 48.6 60 60

Germany … 54.6^* 54.6^* 54.6^*

Holland … 71 71 71

Italy … 72 72 (86.2) 72 (86.2)

Sweden … 54 (77) 54 (77) 54 (77)

USA … 50 (55.5) 50 (55.5) 70 (73.3)

UK … 83 83 98

^* 57.2 per cent. including Stability Surcharge expiring 30th June 1974.

Notes:
Figures in brackets include local income taxes on the following basis:
Italy: at top rates local taxes are not charged on employment income.
Sweden: at the average rate.
USA: at a typical rate (California). The State taxes are deductible for the Federal.

		Employment income Per cent.	Other earned income Per cent.	Investment income Per cent.
France	…	48.6	60	60
Germany	…	54.6^*	54.6^*	54.6^*
Holland	…	71	71	71
Italy	…	72	72 (86.2)	72 (86.2)
Sweden	…	54 (77)	54 (77)	54 (77)
USA	…	50 (55.5)	50 (55.5)	70 (73.3)
UK	…	83	83	98
^* 57.2 per cent. including Stability Surcharge expiring 30th June 1974.