§ Mr. Eggarasked the Chancellor of the Exchequer how many (a) one-parent families and (b) two-parent families paid 178W (i) no income tax, (ii) income tax at the rate of 25 per cent., (iii) income tax at the rate of 33 per cent. and (iv) income tax at higher rates in 1978–79; and how many in each case will pay no tax in the corresponding bands in 1979–80, assuming the Finance Bill is implemented as proposed.
§ Mr. Peter ReesI shall let my hon. Friend have a reply as soon as possible.
§ Mr. Fieldasked the Chancellor of the Exchequer how much of the total tax revenue lost as a result of the cuts in direct taxation announced in the Budget, including the changes announced in the caretaker Budget, has benefited (a) taxpayers who were paying above the standard rate before the Budget, (b) taxpayers paying the standard rate before the Budget and (c) taxpayers who were paying at the 25 per cent. rate before the Budget; and how many taxpayers were in those categories before the Budget.
§ Mr. Peter ReesI shall let the hon. Member have a reply as soon as possible.
§ Mr. Fieldasked the Chancellor of the Exchequer what is the total number of taxpayers as a subset of the total number of taxpayers responsible for children, counting husbands and wives as single units.
§ Mr. Peter ReesI shall let the hon. Member have a reply as soon as possible.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will update the reply given to the hon. Member for Norfolk, North, Official Report, 15 December 1978, c. 512, showing the levels of gross income in each of the member States of the EEC and in Sweden, the United States of America, Canada, Australia and Japan at which a single person, a single-wage married couple, and a single-wage couple with two children are liable for: at marginal rates of 37 per cent. and of 47 per cent., or whichever rate is nearest to each of these.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 10 July 1979, Vol. 970], gave the following answer:
A full answer has not been given on grounds of disproportionate cost but the tables below bring the position up to date 179W as regards national or federal income taxes only:
TABLE 1 GROSS £ STERLING EMPLOYMENT INCOME LEVEL, AT WHICH A MARGINAL NATIONAL (FEDERAL) INCOME TAX RATE NEAREST TO 37 PER CENT. STARTS, SHOWING THE PERCENTAGE RATE APPLICABLE AT THAT LEVEL. County Single person Rate Married couple: husband only earning Rate Married couple with two children under 11: husband only earning Rate £ Per cent. £ Per cent. £ Per cent. EEC Belgium … 5,740 38.8 7,430 38.8 7,430 38.8 Denmark … 12,080 39.6 12,080 39.6 12,080 39.6 France … 13,320 36.0 26,270 36.0 39,190 36.0 Germany … 8,260 36.7 14,660 36.7 14,660 36.7 Ireland … 2,010 35.0 3,030 35.0 3,425 35.0 Italy … 14,820 36.0 14,820 36.0 14,820 36.0 17,780 38.0 17,780 38.0 17,780 38.0 Luxembourg … 6,330 36.9 11,900 36.9 13,130 38.0 Netherlands … 9,070 40.0 10,620 40.0 10,620 40.0 United Kingdom … 11,165 40.0 11,815 40.0 11,815 40.0 Others United States … 11,140 39.0 14,500 37.0 15,410 37.0 Canada … 17,000 36.0 17,910 36.0 18,300 36.0 Australia … 2,000 33.5 2,900 33.5 2,900 33.5 Japan … 27,230 37.8 27,920 37.8 29,270 37.8 Sweden … 7,390 35.0 7,390 35.0 7,390 35.0
TABLE 2 GROSS £ STERLING EMPLOYMENT INCOME LEVEL, AT WHICH A MARGINAL NATIONAL (FEDERAL) INCOME TAX RATE NEAREST TO 47 PER CENT. STARTS, SHOWING THE PERCENTAGE RATE APPLICABLE AT THAT LEVEL. County Single person Rate Married couple: husband only earning Rate Married couple with two children under 11: husband only earning Rate £ Per cent. £ Per cent. £ Per cent. EEC Belgium … 13,810 47.5 13,810 47.5 13,810 47.5 Denmark … 12,080 39.6 12,080 39.6 12,080 39.6 (top rate) (top rate) (top rate) France … 19,190 43.2 37,950 43.2 40,510 45.0 Germany … 12,100 46.7 22,480 46.7 22,480 46.7 Ireland … 4,740 45.0 5,760 45.0 6,150 45.0 Italy … 35,560 46.0 35,560 46.0 35,560 46.0 47,420 48.0 47,420 48.0 47,420 48.0 Luxembourg … 8,175 46.1 15,350 46.1 16,640 47.2 Netherlands … 11,630 50.0 12,160 50.0 12,160 50.0 United Kingdom … 13,165 45.0 13,815 45.0 13,815 45.0 Others United States … 15,955 49.0 21,730 49.0 22,640 49.0 Canada … 40,400 43.0 41,310 43.0 41,710 43.0 (top rate) (top rate) (top rate) Australia … 8,520 47.5 8,520 47.5 8,520 47.5 Japan … 38,900 45.0 39,580 45.0 40,940 45.0 Sweden … 8,530 45.0 8,530 45.0 8,530 45.0 9,680 49.0 9,680 49.0 9,680 49.0 Notes:
1. Conversions to sterling were made at the exchange rates prevailing in London on 9 July 1979. Such conversions do not reflect differences in domestic purchasing power between the United Kingdom and individual foreign currencies.
2. The income is assumed throughout, in the case of married couples, to be wholly the husband's.
3. Personal reliefs, minimum expenses deductions, employment income reliefs and other flat rate reliefs have been taken into account, as have deductible social security contributions. Voluntary contributions to social security schemes have been ignored.
4. Figures are for the income year 1979 or 1979–80, except for France (1978), which fixes its rates in arrear at the end of the income year, and Australia (1978–79), where the 1979–80 rates have not yet been announced. The 1979–80 Irish rates are subject to final approval by the Irish Parliament. The United Kingdom (1979–80) figures take into account the income tax deductions proposed by the Chancellor in his Budget.
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§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is his latest estimate of the percentage of revenue from income tax paid by people earning average and below average earnings.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 9 July 1979] gave the following answer:
Information specifically related to wages and salaries could be obtained only at disproportionate expense. In 1979–80 about 24 per cent. of tax liabilities for persons under 65 will be incurred by those whose total income during the year is less than the normal equivalent of average weekly earnings of full-time adult male employees at April 1979, the latest date available. In the case of married couples the calculations relate to joint income.
§ Mr. Gwilym Robertsasked the Chancellor of the Exchequer if he will publish in the Official Report the numbers involved and the proportions paying income tax at various levels.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 9 July 1979] gave the following answer:
I am not quite sure what the hon. Member has in mind. If he is referring to levels of income, in 1976–77, the latest year for which estimates are available, out of 28.5 million single persons and married couples about 21.3 million paid income tax. Virtually all of those with incomes over £3,000 paid tax, and none of those with incomes under £735 was liable to tax on income, other than composite rate tax on interest received from building societies.
If the hon. Member is referring to numbers paying different amounts of tax, the estimates for 1976–77 are as follows:
Range of Income tax Nos. £ thousauds 0–250 3,770 250–500 4,170 500–750 4,290 750–1000 3,350 1000–2000 4,640 2000–3000 623 3000–4000 201 4000–5000 91 Over 5000 194 All Ranges 21,300 Estimates for 1979–80 could be provided only at disproportionate expense.