§ Mr. Trotterasked the Chancellor of the Exchequer what gross income would require to be earned in (a) four years' time and (b) 10 years' time by a married man with two children in order to maintain in real terms the net value after tax of his present annual earnings before tax of (a) £2,000, (b) £3,000, (c) £4,000 and (d) £5,000 on the assumption that inflation runs at an annual rate of 20 per cent. and the present rates of tax continue.
§ Mr. Robert SheldonThe figures are as follows:
1974–75 Gross earnings required in Gross earnings Earnings after tax 4 years' time 10 years' time £ £ £ £ 2,000 1,751 4,806 25,598 3,000 2,421 7,035 50,004 4,000 3,091 9,744 74,404 5,000 3,761 13,316 98,810 For the purposes of the calculations it has been assumed that the children are under 11 throughout; that the 1974–75 rates of personal allowances remain in force; that the arrangements for family allowances and clawback remain as in 1974–75; and that family allowance is not claimed where it is not to the taxpayer's advantage.