HC Deb 28 February 1977 vol 927 cc91-2W
Mr. Hordern

asked the Chancellor of the Exchequer what would be the loss to the revenue if the following bands of earned income were taxed at the following rates, ignoring all allowances: £4,000 at nil, 10 per cent., 20 per cent. and 30 per cent., £4,000 to £5,000 at 10 per cent., 20 per cent. and 30 per cent., £5,000 to £6,000 at 10 per cent., 20 per cent. and 30 per cent., £6,000 to £7,500 at 20 per

Income year 1x 2x 3x 4x
United Kingdom … … … 1976–77 … … 35.0 50.0 65.0 70.0
Belgium … … … 1976 … … 20.2 35.6 41.8 46.8
(21.4) (37.8) (44.1) (49.3)
Denmark … … … 1977 … … 14.4 28.8 39.6 39.6
(38.6) (53.0) (63.8) (63.8)
France … … … 1976 … … 7.2 14.4 21.6 28.8
Germany … … … 1977 … … 22.0 22.0 36.0 42.0
Ireland … … … 1976–77 … … 38.5 60.5 77.0 77.0
Italy … … … 1977 … … 16.0 29.0 32.0 35.0
Luxembourg … … … 1977 … … Nil 22.9 41.0 47.2
Netherlands … … … 1977 … … 25.0 32.0 50.0 59.0
U.S.A. … … … 1977 … … 25.0 18.5 25.0 28.0
(27.0) (22.5) (31.0) (36.0)
Japan … … … 1976 … … 7.0 11.2 16.8 21.6
(10.5) (20.0) (26.4) (33.3)

  1. 1. United Kingdom average earnings are taken as £4,077 (the New Earnings Survey estimate of average earnings for full time adult males in April 1976 updated to December 1976 by the Index of Average Earnings). Foreign currency equivalents have been converted at the exchange rates for 16th February 1977.
  2. 2. Account has been taken, where appropriate, of any minimum, flat-rate, or percentage reliefs and allowances, and of deductibility of social security contributions.
  3. 3. The figures in brackets include:
    1. (a) for Belgium, the normal rate of local income tax;
    2. (bf) or Denmark, communal income tax for Copenhagen;
    3. (c) for USA, California income tax;
    4. (d) for Japan, the normal rates of local income taxes.
  4. 4. The marginal rate payable in USA on earnings equivalent to UK average earnings is higher than that payable on twice UK

cent., 30 per cent. and 40 per cent., £7,500 and upwards at 30 per cent., 40 per cent. and 50 per cent.

Mr. Denzil Davies

I regret that this Question cannot be answered without disproportionate expenditure.

Mr. Newton

asked the Chancellor of the Exchequer if he will show the marginal rates of tax on earned income for a married man with two children under 11 years, in the EEC countries, United States of American and Japan, for (a) a family with United Kingdom average earnings and its foreign currency equivalent, (b) a family on twice average earnings, (c) a family on three times average earnings, and (d) a family on four times average earnings.

Mr. Denzil Davies

The following table shows the marginal percentage rate of in-income tax on the employment income of a married man with two children under 11, at the multiples specified of United Kingdom average earningsaverage earnings because at the lower income level taxpayers are subject to a progressive withdrawal of tax credit and at the higher income level they enjoy a percentage deduction from income instead of a flat rate deduction.

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