§ Mr. George Gardinerasked the Chancellor of the Exchequer if he will publish a table, in ascending order of magnitude, of the threshold at which income tax is levied, measured in £ sterling in the United Kingdom, the United States of America, Canada, Italy, France, West Germany and Japan.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 10th July 1978; Vol. 953, c. 401], gave the following information:
INCOME TAX THRESHOLD Single person £ Italy 870 United Kingdom 985 (3) Canada 1,280 (4) United States of America 1,680 West Germany 1,735 Japan 2,000 (4) France 2,220 Married man plus two children under II Italy 1,520 United Kingdom 1,735 (3) Canada 2,830 (4) West Germany 3,020 Japan 3,930 (4) United States of America 3,960 France 4,350 Notes:
1. Sterling amounts were converted at the official exchange rates as at 4th July 1978. These do not reflect the generally higher costs of living in the countries being compared with the United Kingdom.
2. It is assumed throughout that all income is from employment and for the married man with two children that all the income is that of the husband. Personal reliefs, minimum expenses deductions, employment income reliefs, other flat-rate reliefs, and deductible social security contributions have been taken into account.
3. Figures for the United Kingdom are 1978 Budget proposals.
4. In Canada and Japan, the thresholds for local income tax are lower than those for the federal or national income tax. Local income tax thresholds have been quoted in the table. For Canada, the Ontario rate of local income tax has been taken, and for Japan, the most widely applicable rates have been used. The national income tax thresholds for these two countries are as follows:—
Single Married plus two children £ £ Canada … 2,450 4,000 Japan … 2,250 5,530