§ Mr. Newtonasked the Chancellor of the Exchequer whether he will set out, in 1977–78 terms, the revenue cost of reducing the top rate of income tax to 70 per cent, 60 per cent, and 50 per cent for earned income, assuming retention of the investment income surcharge.
§ Mr. Robert SheldonIf one assumes that earned income forms the bottom slice of any mixed income, the full year cost for 1977–78 of reducing the top rate of income tax on earned income from 83 per cent to 70 per cent, 60 per cent or 50 per cent would be £100 million, £230 million or £435 million respectively.
§ Mr. Newtonasked the Chancellor of the Exchequer whether he will publish in the Official Report 1977–78 figures representing the effect in revenue terms of (a) a one penny movement in the basic rate of income tax, and (b) a one penny movement in the higher rates of tax taken as a whole.
§ Mr. Robert SheldonThe full year cost for 1977–78 of reducing the basic rate of income tax by one percentage point is about £480 million. The cost of reducing all the higher rates of tax by one point is about £40 million.
§ Mr. Newtonasked the Chancellor of the Exchequer whether any country has, from international sources available to him, a starting rate for income tax higher than 33 per cent.
§ Mr. Robert SheldonFrom the sources available to me I am not aware of any country other than the United Kingdom with a starting rate for national income tax higher than 33 per cent.