§ Mr. David Mitchellasked the Chancellor of the Exchequer if he will publish, from international sources of information available to him, a table showing the comparative marginal rates of tax on higher incomes in the United Kingdom and in other countries where the rate is lower.
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§ Mr. Robert SheldonBecause of differences in tax systems it is not possible to show simply in tabular form a range of comparative rates of tax at different income levels. The following table shows the maximum marginal rates of national income tax in the EEC and some other developed countries:
Earned income Per cent. Investment income Per cent. EEC— Belgium 72* 72* Denmark 39.6* 39.6* France 48.6 60 Germany 56 56 Ireland 77 77 Italy 72 72* Luxembourg 57 57 Netherlands 71 71 United Kingdom 83 98 Other countries— Australia 65 65 Canada 47* 47* Japan 67.5* 75* Sweden 56* 56* U.S.A 50* 70* * In addition there are local income taxes. In some countries the rates applying to earned income from self-employment differ from those shown.
Further information is available from "Income Taxes Outside the United Kingdom", compiled by the Inland Revenue, a copy of which is in the Library.