§ Mr. Pardoeasked the Chancellor of the Exchequer how many and what proportion of taxpayers pay more than 30 per cent. of their whole income in income tax; and what revenue accrues from their so doing.
§ Mr. Robert SheldonIt is not possible to make exact estimates on the information readily available, but an approximate estimate is 650,000 taxpayers, counting married couples as one, representing about 3 per cent. of the total estimated number of taxpayers for 1978–79. The excess of the tax that they pay, over what they would pay if this average rate of tax were limited to 30 per cent., is roughly £1,000 million.
§ Mr. George Gardinerasked the Chancellor of the Exchequer what would be the saving in administrative costs of raising personal allowances far enough to 598W exempt from income tax altogether (a) two-and-a-half million taxpayers, and (b) five million taxpayers.
§ Mr. Robert SheldonI shall let the hon. Member have a reply as soon as possible.
§ Mr. David Mitchellasked the Chancellor of the Exchequer when the average family on the average wage last did not pay income tax; and how much the average family on the average wage pays in income tax in the current year, or the most recent year for which figures are available.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 30 March 1979; Vol. 965, c. 374], gave the following answer:
1952–53, taking a married man with two children under the age of 11 earning average manual wages.
In 1978–79 a man in the same circumstances would pay income tax of £838 but would receive tax-free child benefit of £267.