§ 8. Mr. Raceasked the Chancellor of the Exchequer what proportion of income of a family man, with a wife—not working—and two children, on average earnings will be taken by income tax and national insurance combined in 1982–83; what was the corresponding figure for 1978–79; and what has been the proportionate increase in percentage terms between those two years.
§ Mr. Bruce-GardyneThat depends upon what happens to average earnings. On the basis of the illustrative assumption made by the Government Actuary of a 7½ per cent. increase in average earnings between the last financial year and this, the figure for 1982–83 will be 28 per cent. In 1978–79 the corresponding figure was 25¼ per cent.
§ 20. Miss Wrightasked the Chancellor of the Exchequer whether the proportion of earnings taken by income tax and national insurance will be higher or lower in 1982–83 as compared with 1981–82, and 1978–79 for a family man with two children—wife not working—on earnings between 75 per cent. and 200 per cent. of average earnings.
§ Mr. Bruce-GardyneIf it is assumed that earnings increase in 1982–83 by 7½ per cent., the combined proportions of income tax and national insurance contributions will be higher in 1982–83 than in both the years the hon. Member has referred to.