HC Deb 15 February 1984 vol 54 cc198-9W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table showing the percentage of earnings absorbed by income tax and employees' social security contributions at different levels of earnings in the United Kingdom, France, Germany, the United States of America and Japan, respectively.

Mr. Moore

The information requested, for selected levels of employment income, and family responsibilities is as follows:

Percentage of earnings absorbed by income tax and social security contributions
Single Person
Earnings per annum £3,000 £5,000 £9,000 £12,000 £16,000 £20,000 £30,000 £50,000
United Kingdom 21 28 33 34.5 33.5 35 39 47
France 12 19 25 28 32 34 39 47
Germany 24 29 36 36 40 43 47 50
USA 9(9) 14(14) 18(20) 20(23) 23(28) 26(32) 30(38) 34(44)
Japan 11(12) 13(15) 15(18) 16(21) 18(23) 18(24) 20(28) 28(38)
Married Couple
Earnings per annum £3,000 £5,000 £9,000 £12,000 £16,000 £20,000 £30,000 £50,000
United Kingdom 11 22 30 32 32 33 38 45.5
France 12 15 18 20 24 26 30 37
Germany 17 24 29 26 28 30 35 42
USA 7(7) 9(9) 14(15) 16(17) 19(20) 21(23) 25(29) 30(37)
Japan 10(10) 12(13) 14(16) 15(19) 17(21) 17(23) 19(27) 27(37)
Married Couple with Two Dependent Children
Earnings per annum £3,000 £5,000 £9,000 £12,000 £16,000 £20,000 £30,000 £50,000
United Kingdom 0 10 23 27 28 29 35.5 44
France 0 3 10 12 15 19 24 33
Germany 2 14 23 21 25 27 33 41
USA 7(7) 7(7) 12(12) 14(15) 17(19) 19(22) 24(28) 29(36)
Japan 10(10) 10(10) 12(13) 13(16) 15(17) 15(20) 18(25) 25(35)

Notes:

  1. 1. The figures shown relate to income of 1983 (1983–84 in the case of the United Kingdom).
  2. 2. Conversions were made at the exchange rates prevailing in London on 31 January 1984. They may not fully reflect differences in purchasing power between sterling and the other currencies.
  3. 3. In addition to personal allowances, the tables take into account employment income reliefs and other standard reliefs (including income tax relief for social security contributions) given in certain of the countries.
  4. 4. The income of the married couple is assumed to be wholly income of the husband.
  5. 5. The percentages given for a married couple with two dependent children reflect the tax due less any child benefit payable in respect of the children.
  6. 6. It is assumed that the United Kingdom employee is contracted-in to the state pension scheme.
  7. 7. The figures in brackets for the USA and Japan include local income taxes at typical rates.