§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will publish figures showing the level of gross income for each of a single person, a married couple and a couple with two children at which income tax becomes payable at 40 per cent., in the United Kingdom, the United States of America, France, Germany and Japan, respectively.
§ Mr. Peter ReesThe information requested is given in the table below:
Gross income level at which income tax becomes payable at 40 per
41WNotes:
1. Conversions to sterling were made at the exchange rates prevailing on 21 November 1980. Such conversions may not reflect differences in purchasing power between sterling and other currencies.
2. It is assumed that the income is wholly employment income, and in the case of the married couple, wholly that of the husband.
3. Figures in brackets take into account local taxes. For the United States of America the rates taken are the California rates, and for Japan the rates applying to the majority of the population.
4. The rates used are those for the income tax year 1980 or 1980–81, except for California and France where 1979 rates are used since the rates or 1980 will not be fixed until the end of the tax year.
5. Personal reliefs, minimum expenses deductions, employment income relief and other flat rate reliefs have been taken into account, as have deductions given for social security contributions. Child benefits have been ignored.