HC Deb 04 May 1978 vol 949 cc247-8W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a list showing for each member State of the European Community, the United States of America, Canada, Sweden and Japan (a) the starting rate of income tax, and (b) the top rate of income tax, in league order, with the highest at the top, and excluding local income tax.

Mr. Robert Sheldon

The information requested is given in the table below:

(a) STARTING RATES OF INCOME TAX
Per cent.
United Kingdom 25(1)
Germany 22
Ireland 20
Netherlands 19.2
Luxembourg 18.4
Canada 17
Denmark 14.4
United States of America 14
Belgium 11.2
Italy 10
France 7.2
Japan 7
Sweden 2
(b) TOP RATES OF INCOME TAX
Per cent.
United Kingdom 98(2)
Japan 75(2)
Belgium 72
Italy 72
Netherlands 72
United States of America 70(2)
Ireland 60
France 60(2)
Luxembourg 58.4
Sweden 58
Germany 56
Canada 43
Denmark 39.5

General notes:

  1. (a) The rates are those for 1978, except for Ireland (1977–78), and France, Japan and United States of America (1977). The Belgian starting rate is that for 1977.
  2. (b) In all cases the starting rates are the lowest applicable when tax actually becomes payable. All figures relate to a married man with two children aged 9 and 13, except for the United States of America where a single man begins to pay tax at the rate shown. The starting rate in the United States of America for a married man with two children aged 9 and 13 is 25 per cent. because of the progressive withdrawal of tax credits for such a man at this income level.

Individual countries:

  1. (1) Budget proposal.
  2. (2) In the following countries there are lower top rates on employment income as follows:

Per cent.
United Kingdom 83
Japan 67.5
France 54
United States of America 50