§ Mr. Peter Reesasked the Chancellor of the Exchequer what was the tax threshold, at constant prices, of a married man with two children aged under 11 years of age in October 1964, June 1970, and February 1974, and under the tax rates proposed in the Budget.
§ Dr. GilbertThe figures are:
Tax threshold per annum (at October 1964 prices) October 1964 735 June 1970 647 February 1974 617 Proposed for 1974–75 715 Family allowance and clawback have been taken into account in calculating the thresholds. For the threshold implied by the 1974–75 Budget proposals, the retail price index for February 1974 has been used.
§ Mr. Peter Reesasked the Chancellor of the Exchequer what is the top marginal rate of tax on earned and investment income, respectively; and at what level of income these rates are reached for a married couple with two children, aged under 11 years, in each of the member countries of the EEC and in the United States of America.
§ Dr. GilbertIt is difficult to make comparisons with other countries of 133W what we should describe as the top marginal rate, but subject to many
United Kingdom Belgium Denmark France Germany Top marginal rate (per cent.): Earned income 83.0 66.0 (69.6) 40.95 (60.7) 48.6 54.6 Investment Income 98.0 66.0 (66.6) 40.95 (60.7) 60.0 54.6 Income at which top rate is reached (£ per annum): Earned income 21,294 43,610 7,560 27,960 36,210 Investment income 21,294 42,550 7,420 24,450 36,110 Ireland Italy Luxembourg Netherlands U.S.A Top marginal rate (per cent.): Earned income 80.0 72.0 57.0 71.0 50.0 (55.5) Investment income 80.0 72.0(86.2) 57.0 71.0 70.0 (73.3) Income at which top rate is reached (£ per annum): Earned income 9,220 356,500 14,280 22,740 21,030 Investment income 7,210 333,333 13,720 21,980 87,980 Notes:
Figures in brackets include local taxes.
Incomes are shown on the basis of exchange rates at 19th March 1974
§ Mr. Kenneth Clarkeasked the Chancellor of the Exchequer how much extra revenue he expects to acquire from the lowering of the threshold for surcharge on investment income from £2,000 to £1,500 per annum in the case of persons over 65 years of age.
§ Dr. GilbertAbout £10 million in a full year.