§ Mr. Richard Pageasked the Chancellor of the Exchequer what is the starting percentage rate of personal income tax, the standard rate of income tax and the top rate of income tax applicable in West Germany, Japan, France, the United States of America, Canada, Italy, and the United Kingdom.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 22 February, Vol. 967, c. 267], gave the following information:
Of these countries only the United Kingdom has the concept of a standard rate—or basic rate, as it is now known—of income tax. The United Kingdom basic rate of income tax is 33 per cent. The other information requested is given in the table below:
Starting percentage rate of income tax Top rate of income tax West Germany 22 56 Japan 10 67.5 France 5 60 USA 14 50 Canada 6 43 Italy 10 72 United Kingdom 25 83 Notes:
1. The rates are those for 1979 or 1978–79.
2. Figures relate to employment income. The top rate of tax on investment income in Japan is 75 per cent., in USA 70 per cent. and in the United Kingdom 98 per cent.
3. All figures relate to national or federal tax only.
4. (a) In Japan, USA and Canada there are also local income taxes. Sample starting rates and top rates of local income taxes on employment income are:—
Starting rate per cent. Top rate percent. Japan (the rate applicable to the great majority of the population) 2.4 16.2 USA (the Californian rate) 1.0 11.0 Canada (the Ontario rate) 2.6 18.9 (b) In the USA local income taxes are deductible in computing taxable income for federal income tax purposes.