§ Mr. Marlowasked the Chancellor of the Exchequer if he will set out the rate of income tax increase which, for a married man with two children and a wife not working with average mortgage, would have had the same effect on net income for those earning £100, £110, £120, £130, £140, £150, £160, £170, £180, £190, £200, £210 and £220 per week as the recent increase in range and percentage of national insurance contributions.
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§ Mr. Peter Rees[pursuant to his reply, 18 December 1980]: At 1980–81 levels of personal allowances the increases in the basic rate of tax shown in the following table would have the same effect on net income as the increase of I per cent. in national insurance contributions to be introduced next April. The equivalents in 1981–82 would depend on the level of personal allowances in that year.
The calculations do not take account of the increases in earnings limits since these are a consequence of general increases in earnings and prices and it would not be appropriate to include them without taking account also of increases in earnings.
Weekly earnings Increase in basic rate equivalent to 1 per cent, increase in NIC £ p 100 2.6 110 2.3 120 2.1 130 1.9 140 1.8 150 1.7 160 1.6 170 1.5 180 1.4 190 1.3 200 1.2 210 1.1 220 1.0 The figures are for a married man whose wife is not working and who has no allowances against tax except for the married man's allowances and reliefs on a mortgage of £7,100 (the average balance outstanding on all building society mortgages in 1979), assuming an interest rate of 15 per cent.