§ Mr. Andrew F. Bennettasked the Chancellor of the Exchequer what is the percentage of income taken in income tax, higher rates of tax and national insurance contributions for workers with (a) no dependants, (b) wife and two children (under 11 years of age) and (c) wife and four children (two under 11 and two over 11 years of age), earning (1) three-quarters of average earnings, (2) average earnings, (3) twice average earnings and (4) five times average earnings, in the United Kingdom and each member country of the EEC.
§ Mr. Robert SheldonThe following information, which is taken from Revenue Statistics of OECD Member Countries 1965–72, Annexe I Table 3, shows the average combined rate of personal income tax and socal security contributions paid by a taxpayer with average earnings of production workers in manufacturing in each country for 1972:
Personal income tax includes local income taxes, but not other forms of local 218W taxation, where they apply. Children are assumed to be of school age.
Single man Married couple with two children Per cent. Per cent. Belgium 21.6 19.4 Denmark 39.7 33.5 France 14.2 7.6 Germany 29.3 21.3 Ireland 22.8 12.2 Italy 15.3 14.3 Luxembourg 25.0 15.3 Netherlands 32.4 29.4 United Kingdom 26.1 17.2 I regret that information in this form is not available for the other categories specified or for later years than 1972.
§ Mr. Atkinsonasked the Chancellor of the Exchequer what loss of revenue would be incurred if all taxpayers receiving £25 or less per week gross were exempt from tax, allowing the disproportionate step to remain which would then occur for those with incomes just above £25 per week.
§ Mr. Robert SheldonThe amount of income tax to be paid in 1975–76 by taxpayers with gross incomes of less than £1,300 a year—£25 a week—is estimated at £230 million.
§ Mr. Atkinsonasked the Chancellor of the Exchequer what loss of revenue would be incurred if married allowances were increased by a further £100 and single allowances by a further £70 but set against a further basic and higher rates increase of 2p for the next full year; what would be the redistributive effects; and if he will set out the information in the most convenient form related to each quartile between £1,000 and £10,000 income per year.
§ Mr. Robert SheldonAssuming that the wife's earned income allowance was increased by the same amount as the single allowance and that the increase in tax rates did not apply to the highest rates, the estimated effect of the proposal on revenue for 1975–76 would be an additional yield of about £60 million. The distribution by range of income would be as follows:
Total net income* (−cost, + yield) £ per annum £ million Under 3,000 −92 3,000–6,000 +48 6,000–10,000 +52 Over 10,000 +52 Total +60 * As defined in Inland Revenue Statistics 1974. page 41.