§ Sir Brandon Rhys Williamsasked the Chancellor of the Exchequer if he will publish figures showing for each of a single person a single-wage married couple and single-wage married couple with two children aged (a) under 11 and (b) 17 and 15 years, income tax and national insurance 545W contribution marginal tax rates, separately and together and net of child benefit where appropriate, and average tax rates, at 75 per cent., 100 per cent., 200 per cent., and 500 per cent., of average male manual earnings in 1960, 1970, 1980 and the latest year for which figures are available.
§ Mr. MooreThe following table shows marginal and average rates of income tax and national insurance contributions, at the not contracted-out rate, for the family types specified. Average rates are calculated as a percentage of gross earnings and, for income tax, are shown net of receipt of family allowance and child benefit. The calculations assume that no reliefs were available
546W
Marginal and average rates of Income Tax and NIC Per cent. Marginal Rates Average rates IT NIC IT+NIC IT-CBIFAM NIC IT+NIC-CB/FAM At three-quarters average male manual earnings Single 1960–61 24.3 — 24.3 11.6 4.6 16.1 1970–71 32.1 3.25 35.4 19.8 6.7 26.5 1980–81 30.0 6.75 36.8 21.0 6.7 27.7 1984–85 30.0 9.0 39.0 20.2 9.0 29.2 Married 1960–61 24.3 — 24.3 5.8 4.6 10.4 1970–71 32.1 3.25 35.4 14.5 6.7 21.2 1980–81 30.0 6.75 36.75 16.0 6.7 22.7 1984–85 30.0 9.0 39.0 14.6 9.0 23.6 Married+2* 1960–61 6.8 — 6.8 -3.6 4.6 1.0 1970–71 32.1 3.25 35.4 4.6 6.7 11.3 1980–81 30.0 6.75 36.75 6.3 6.7 13.0 1984–85 30.0 9.0 39.0 3.3 9.0 12.3 Married+2† 1960–61 — — — -3.7 4.6 0.9 1970–71 32.1 3.25 35.4 1.7 6.7 8.4 1980–81 30.0 6.75 36.75 6.3 6.7 13.0 1984–85 30.0 9.0 39.0 3.3 9.0 12.3 At average male manual earnings Single 1960–61 30.1 — 30.1 15.6 3.4 19.0 1970–71 32.1 3.25 35.4 22.9 5.8 28.7 1980–81 30.0 6.75 36.75 23.3 6.7 30.0 1984–85 30.0 9.0 39.0 22.6 9.0 31.6 Married 1960–61 24.3 — 24.3 10.2 3.4 13.6 1970–71 32.1 3.25 35.4 18.9 5.8 24.7 1980–81 30.0 6.75 36.75 19.5 6.7 26.2 1984–85 30.0 9.0 39.0 18.4 9.0 27.4 Married+2(a) 1960–61 16.5 — 16.5 0.6 3.4 4.0 1970–71 32.1 3.25 35.4 11.4 5.8 17.3 1980–81 30.0 6.75 36.75 12.2 6.7 19.0 1984–85 30.0 9.0 39.0 10.0 9.0 19.0 Married+2(b) 1960–61 16.5 — 16.5 -1.5 3.4 1.9 1970–71 32.1 3.25 35.4 9.3 5.8 15.2 1980–81 30.0 6.75 36.75 12.2 6.7 19.0 1984–85 30.0 9.0 39.0 10.0 9.0 19.0 At twice average male manual earnings Single 1960–61 30.1 — 30.1 22.9 1.7 24.6 1970–71 32.1 — 32.1 27.5 3.0 30.5 1980–81 30.0 — 30.0 26.6 4.7 31.4 1984–85 30.0 — 30.0 26.3 7.2 33.5 Married 1960–61 30.1 — 30.1 20.1 1.7 21.7 1970–71 32.1 — 32.1 25.5 3.0 28.5 other than personal allowances and (where appropriate) child tax allowances and earned income relief; and that both children in case (b) were receiving full time education.
Estimates of average earnings for full-time adult male manual workers are as follows:
547W
£ per week 1960–61 14.50 1970–71 28.05 1980–81 117.60 1984–85 157.30
Marginal Rates Average rates IT NIC IT+NIC IT-CB/FAM NIC IT+NIC-CB/FAM 1980–81 30.0 — 30.0 24.7 4.7 29.5 1984–85 30.0 — 30.0 24.2 7.2 31.4 Married+2(a) 1960–61 30.1 — 30.1 14.0 1.7 15.7 1970–71 32.1 — 32.1 21.8 3.0 24.8 1980–81 30.0 — 30.0 21.1 4.7 25.8 1984–85 30.0 — 30.0 20.0 7.2 27.2 Married+2(b) 1960–61 30.1 — 30.1 12.0 1.7 13.7 1970–71 32.1 — 32.1 20.7 3.0 23.7 1980–81 30.0 — 30.0 21.1 4.7 25.8 1984–85 30.0 — 30.0 20.0 7.2 27.2 At five times average male manual earnings Single 1960–61 *47.6 — *47.6 *33.8 0.7 *34.5 1970–71 *56.7 — *56.7 *36.4 1.2 *37.6 1980–81 60.0 — 60.0 40.5 1.9 42.4 1984–85 60.0 — 60.0 39.8 2.9 42.7 Married 1960–61 *47.6 — *47.6 *32.2 0.7 *32.8 1970–71 *52.2 — *52.2 *35.2 1.2 *36.4 1980–81 60.0 — 60.0 39.0 1.9 40.9 1984–85 55.0 — 55.0 38.2 2.9 41.1 Married+2* 1960–61 *47.6 — *47.6 *28.9 0.7 *29.6 1970–71 *52.2 — †52.2 *†33.4 1.2 *†34.6 1980–81 60.0 — 60.0 37.6 1.9 39.5 1984–85 55.0 — 55.0 36.5 2.9 39.4 Married+2† 1960–61 *47.6 — *47.6 *27.8 0.7 *28.5 1970–71 52.2 — *52.2 *†32.8 1.2 *†134.0 1980–81 60.0 — 60.0 37.6 1.9 39.5 1984–85 55.0 — 55.0 36.5 2.9 39.4 * Includes surtax. † Assumes that FAM was relinquished—this would have been beneficial under the clawback arrangements.