§ Mr. Strawasked the Chancellor of the Exchequer if, pursuant to the answers given by him to the hon. Member 199W for Blackburn, 3 December 1981, c. 188–192, and 17 February 1982, c. 152–54, he will publish in the Official Report tables showing the proportion of personal income taken by taxation and rates for the year 1982–83, and taking account of any changes announced in his Budget Statement and any previously announced changes for each level of average earnings, each category of taxpayer, and each category of taxation and rates as were used in the above mentioned answers, and on a comparable basis.
§ Mr. Ridley[pursuant to his reply, 9 March 1982, c. 377–78]: Estimates for 1982–83 are given in the following tables and notes. I have taken the opportunity to revise the previous estimates of indirect tax payments for 1980–81 and 1981–82 in the light of the most recent information from the 1980 family expenditure survey, and these revised figures are also as follows:
200W
Single percentage of gross income Married two earners Percentage of gross income Married two children Percentage of gross income 1982–83 50 per cent. average earnings Income Tax 18.7 1.1 10.9 NIC 8.8 8.8 7.7 75 per cent. average earnings (a) Income Tax 22.5 10.7 16.7 (b) NIC 8.8 8.8 8.0 (c) VAT 4.4 5.1 3.7 (d) Other indirect taxes 9.1 13.7 10.6 (e) (a)+(b)+(c)+(d) 44.8 38.3 39.1 (f) Rates 4.3 4.3 4.3 (g) (e)+(f) 49.1 42.6 43.4 100 per cent. average earnings (a) Income Tax 24.4 15.5 19.8 (b) NIC 8.8 8.8 8.2 (c) VAT 4.7 5.1 4.0 (d) Other indirect taxes 8.8 11.7 9.6 (e) (a)+(b)+(c)+(d) 46.6 41.2 41.6 (f) Rates 3.4 3.4 3.6 (g) (e)+(f) 50.0 44.6 45.2 150 per cent. average earnings (a) Income Tax 26.2 20.4 23.1 (b) NIC 8.0 8.8 7.7 (c) VAT 5.1 5.2 4.4 (d) Other indirect taxes 8.5 9.7 8.6 (e) (a)+(b)+(c)+(d) 47.8 44.0 43.7 (f) Rates 2.6 2.5 2.8 (g) (e)+(f) 50.4 46.5 46.5 200 per cent. average earnings Income Tax 28.5 22.8 25.6 NIC 6.0 8.8 5.8 500 per cent, average earnings Income Tax 43.7 32.4 41.9 NIC 2.4 4.8 2.4 700 per cent. average earnings Income Tax 48.4 37.9 47.0 NIC 1.7 3.4 1.7 1000 per cent. average earnings Income Tax 51.9 43.7 50.9 NIC 1.2 2.4 1.2 2000 per cent. average earnings Income Tax 55.9 51.9 55.4 NIC 0.6 1.2 0.6
Single percentage of gross income Married two earners Percentage of gross income Married two children Percentage of gross income 1980–81 75 per cent. average earnings (a) Income Tax 22.1 9.7 16.3 (b) NIC 6.8 6.8 6.2 (c) VAT 4.5 5.2 3.8 (d) Other indirect taxes 9.4 13.8 10.7 (e) (a)+(b)+(c)+(d) 42.7 35.5 36.9 (f) Rates 3.8 3.8 3.8 (g) (e)+(f) 46.5 39.3 40.7 100 per cent. average earnings (a) Income Tax 24.1 14.8 19.5 (b) NIC 6.8 6.8 6.3 (c) VAT 4.8 5.2 4.0 (d) Other indirect taxes 9.0 11.8 9.7 (e) (a)+(b)+(c)+(d) 44.6 38.6 39.5 (f) Rates 3.0 3.0 3.2 (g) (e)+(f) 47.6 41.6 42.7 150 per cent. average earnings (a) Income Tax 26.0 19.9 22.8 (b) NIC 5.6 6.8 5.3 (c) VAT 5.2 5.2 4.4 (d) Other indirect taxes 8.7 9.8 8.8 (e) (a)+(b)+(c)+(d) 45.5 41.7 41.4 (f) Rates 2.3 2.2 2.5 (g) (e)+(f) 47.8 43.9 43.9 1981–82 75 per cent. average earnings (a) Income Tax 22.9 11.8 17.4 (b) NIC 7.8 7.8 7.1 (c) VAT 4.6 5.2 3.8 (d) Other indirect taxes 9.4 14.1 10.9 (e) (a)+(b)+(c)+(d) 44.6 38.8 39.2 (f) Rates 4.2 4.2 4.2 (g) (e)+(f) 48.8 42.9 43.4 100 per cent. average earnings (a) Income Tax 24.7 16.3 20.3 (b) NIC 7.8 7.8 7.3 (c) VAT 4.9 5.2 4.1 (d) Other indirect taxes 9.0 12.0 9.9 (e) (a)+(b)+(c)+(d) 46.3 41.3 41.5 (f) Rates 3.3 3.3 3.5 (g) (e)+(f) 49.6 44.7 45.0 150 per cent. average earnings (a) Income Tax 26.4 20.9 23.4 (b) NIC 6.9 7.8 6.7 (c) VAT 5.2 5.3 4.5 (d) Other indirect taxes 8.8 10.0 8.9 (e) (a)+(b)+(c)+(d) 47.4 43.9 43.4 (f) Rates 2.5 2.5 2.7 (g) (e)+(f) 49.9 46.4 46.1 Notes to tables
- 1. Income tax payments are calculated on the assumption that households have no allowances available to them other than their personal allowances. It has been assumed that working couples would make the wife's earned income election where this would result in a lower joint tax bill.
- 2. All National Insurance Contributions are at the Class I standard rate for employment not contracted out of the state additional (earnings related) pension scheme.
- 3. Indirect taxes (including domestic rates and VAT) are imputed to households at different income levels by means of regression estimates based on Family Expenditure Survey Data. Such estimates however are not reliable at income levels of 50 per cent. of average earnings or at 200 per cent. and above: consequently no figures are shown for indirect tax and domestic rate payments for households at these income levels.
201 - 4. "Average earnings" are defined here as the average gross earnings of full-time men whose pay was unaffected by absence; all occupations, all industries and services, Great Britain, monthly average for each financial year. The figures used for 1981–82 and 1982–83 are illustrative: they are based on the rates of earnings increase assumed by the Government Actuary in his report on the Social Security (Contributions) Bill. Average earnings are assumed to be £160 a week in 1982–83.
- 5. For the working couple, the assumption is made that the couple have joint earnings at the levels specified—this is in order to facilitate comparison with the other household types. For the purposes of calculating national insurance contributions the man is assumed to earn 60 per cent. of the joint earnings (the ratio of full-time male earnings to full-time female earnings in April 1981). There would, in practice, be very few households whose joint earnings would be as low as 50 per cent. of average male earnings. Similarly, there are few households with earnings above 5 times average.
- 6. The percentage columns express the various taxes and combinations thereof as a percentage of gross earnings plus, where appropriate, child benefit calculated at an average rate for the financial year. The weekly child benefit figure for 1982–83 is £10.94.
- 7. Line (g) should not be taken to represent a total liability to tax consequent on a given earnings level, since the payments of indirect taxes and rates are only estimated on the typical expenditure pattern at that level.