§ Mr. Strawasked the Chancellor of the Exchequer if he will publish in the Official Report tables showing (a) the proportion in percentage terms, (b) the amount in current prices and (c) the amount in constant 1983–84 prices, of personal income taken by taxation and rates for the year 1984–85 taking account of any changes announced in his Budget statement and any previously announced changes, and for each of the years 1978–79, 1979–80, 1980–81, 1981–82, 1982–83 and 1983–84 for each level of average earnings, each category of taxpayer, and each category of taxation and rates, in the manner of the answer of 30 March 1983, Official Report, columns 178–84.
§ Mr. Moore[pursuant to his reply, 13 March 1984, c. 139]: Figures for the years 1982–83 to 1984–85 are as follows. Estimates for indirect tax payments are derived from the 1982 "Family Expenditure Survey"; they are unreliable at incomes above one and a half times, and below around three quarters, average earnings. 'Other indirect taxes" includes the effects of indirect taxes levied on businesses such as non-domestic rates, duty on dery and the national insurance surcharge.
Figures for the years 1978–79 to 1981–82 have already been given in earlier answers — 3 December 1981, at columns 188–92: 17 February 1982, at columns 151–54; and 30 March 1983, at columns 178–84. In order to obtain figures at 1983–84 prices the figures shown in those answers in pounds per week at current prices may be multiplied by the following factors:
Year 1978–79 1.683 1979–80 1.453 1980–81 1.250 1981–82 1.121 It should be noted that income tax figures for the couple with children are not wholly comparable with years before 1979–80 because of the switch from child tax allowances to child benefit.
481W482W483W
Single Married both working Married couple +2 children £ per week £ per week 1983–84 prices Per cent, of gross income £ per week £ per week 1983–84 prices Per cent, of gross income £ per week £ per week 1983–84 prices Per cent, of gross income (b)NIC 7.00 7.33 8.8 7.00 7.33 8.8 7.00 7.33 7.7 Income tax and NIC 21.98 23.01 27.5 7.88 8.25 9.9 16.91 17.70 18.6 1983–84 (a) Income tax 15.39 15.39 18.0 0.00 0.00 0.0 9.57 9.57 9.8 (b)NIC 7.71 7.71 9.0 7.71 7.71 9.0 7.71 7.71 7.9 Income tax and NIC 23.10 23.10 27.0 7.71 7.71 9.0 17.28 17.28 17.7 1984–85 (a) Income tax 15.79 15.11 17.3 0.00 0.00 0.0 9.16 8.76 8.8 (b)NIC 8.21 7.86 9.0 8.21 7.86 9.0 8.21 7.86 7.9 Income tax and NIC 24.00 22.97 26.3 8.21 7.86 9.0 17.37 16.63 16.6 75 per cent, of average earnings 1982–83 (a) Income tax 26.99 28.25 22.5 12.88 13.49 10.7 21.91 22.94 16.7 (b)NIC 10.51 11.00 8.8 10.51 11.00 8.8 10.51 11.00 8.0 (c) VAT 4.92 5.15 4.1 5.40 5.65 4.5 4.37 4.57 3.3 (d) Other indirect taxes 9.32 9.76 7.8 13.51 14.14 11.2 11.22 11.75 8.6 (e) a+b+c+d 51.74 54.16 43.1 42.30 44.28 35.2 48.01 50.26 36.6 (f) Rates 4.61 4.83 3.8 5.38 5.63 4.9 5.14 5.38 3.9 (g) e+f 56.35 58.99 46.9 47.68 49.91 39.7 53.15 55.64 40.6 1983–84 (a) Income tax 28.24 28.24 22.0 12.12 12.12 9.4 22.42 22.42 15.9 (b)NIC 11.56 11.56 9.0 11.56 11.56 9.0 11.56 11.56 8.2 (c) VAT 5.29 5.29 4.1 5.86 5.86 4.6 4.73 4.73 3.4 (d) Other indirect taxes 9.86 9.86 7.7 14.40 14.40 11.2 12.00 12.00 8.5 (e) a+b+c+d 54.95 54.95 42.8 43.94 43.94 34.2 50.71 50.71 36.1 (f) Rates 4.92 4.92 3.8 5.75 5.75 4.5 5.49 5.49 3.9 (g) e+f 59.87 59.87 46.6 49.69 49.69 38.7 56.20 56.20 40.0 1984–85 (a) Income tax 29.47 28.20 21.5 11.27 10.78 8.2 22.83 21.85 15.2 (b)NIC 12.31 11.78 9.0 12.31 11.78 9.0 12.31 11.78 8.2 (c) VAT 5.78 5.53 4.2 6.55 6.27 4.8 5.33 5.10 3.5 (d) Other indirect taxes 10.58 10.12 7.7 15.59 14.92 11.4 12.98 12.42 8.7 (e) a+b+c+d 58.14 55.64 42.5 45.72 43.75 33.4 53.45 51.15 35.6 (f) Rates 5.22 5.00 3.8 6.11 5.85 4.5 5.84 5.59 3.9 (g) e+f 63.36 60.63 46.3 51.83 49.60 36.3 59.29 56.74 39.5 100 per cent, of average earnings 1982–83 (a) Income tax 38.99 40.82 24.4 24.89 26.05 15.6 33.92 35.51 19.8 (b)NIC 14.01 14.67 8.8 14.01 14.67 8.8 14.01 14.67 8.2 (c) VAT 6.70 7.01 4.2 7.42 7.77 4.6 6.12 6.41 3.6 (d) Other indirect taxes 12.03 12.59 7.5 15.44 16.16 9.7 13.10 13.71 7.7 (e) a+b+c+d 71.73 75.09 44.8 61.76 64.65 38.6 67.15 70.29 39.3 (f) Rates 4.94 5.17 3.1 5.62 5.88 3.5 5.62 5.88 3.3 (g) e+f 76.67 80.26 47.9 67.38 70.53 42.1 72.77 76.18 42.6 1983–84 (a) Income tax 41.09 41.09 24.0 24.96 24.96 14.6 35.26 35.26 19.2 (b)NIC 15.42 15.42 9.0 15.42 15.42 9.0 15.42 15.42 8.4 (c) VAT 7.40 7.40 4.3 8.03 8.03 4.7 6.60 6.60 3.6 (d) Other indirect taxes 12.72 12.72 7.4 16.44 16.44 9.6 13.96 13.96 7.6 (e) a+b+c+d 76.63 76.63 44.7 64.85 64.85 37.9 71.24 71.24 38.8 (f) Rates 5.27 5.27 3.1 6.00 6.00 3.5 5.99 5.99 3.3 (g) e+f 81.90 81.90 47.8 70.85 70.85 41.4 77.23 77.23 42.1 1984–85 (a) Income tax 43.15 41.29 23.7 24.95 23.87 13.7 36.51 34.94 18.7 (b)NIC 16.42 15.71 9.0 16.42 15.71 9.0 16.42 15.71 8.4 (c) VAT 8.05 7.70 4.4 8.87 8.49 4.9 7.35 7.03 3.8 (d) Other indirect taxes 13.60 13.01 7.5 17.69 16.93 9.7 14.99 14.34 7.7 (e) a+b+c+d 81.22 77.72 44.5 67.93 65.00 37.2 75.27 72.03 38.5 (f) Rates 5.59 5.35 3.1 6.38 6.11 3.5 6.37 6.10 3.3 (g) e+f 86.81 83.07 47.6 74.31 71.11 40.7 81.64 78.12 41.7 150 per cent, of average earnings 1982–83 (a) Income tax 63.01 65.96 26.2 48.90 51.19 20.4 57.93 60.5 23.1 (b)NIC 19.25 20.15 8.0 21.01 21.99 8.8 19.25 20.15 7.7 (c) VAT 10.98 11.49 4.6 11.47 12.01 4.8 9.74 10.20 3.9 484W485W
Single Married both working Married couple +2 children £ per week £ per week 1983–84 prices Per cent, of gross income £ per week £ per week 1983–84 prices Per cent, of gross income £ per week £ per week 1983–84 prices Per cent, of gross income (d) Other indirect taxes 17.65 18.48 7.4 19.30 20.20 8.0 16.99 17.79 6.8 (e) a+b+c+d 110.89 116.08 46.2 100.68 105.39 41.9 103.91 108.77 41.4 (f) Rates 5.64 5.90 2.4 6.09 6.38 2:5 6.62 6.93 2.6 (g) e+f 116.53 121.98 48.5 106.77 111.77 44.5 110.53 115.70 44.0 1983–84 (a) Income tax 66.78 66.78 26.0 50.66 50.66 19.7 60.96 60.96 22.7 (b)NIC 21.15 21.15 8.2 23.13 23.13 9.0 21.15 21.15 7.9 (c) VAT 11.79 11.79 4.6 12.37 12.37 4.8 10.48 10.48 3.9 (d) Other indirect taxes 18.66 18.66 7.3 20.51 20.51 8.0 18.04 18.04 6.7 (e) a+b+c+d 118.38 118.38 46.1 106.67 106.67 41.5 110.63 110.63 41.1 (f) Rates 5.99 5.99 2.3 6.50 6.50 2.5 7.04 7.04 2.6 (g) e+f 124.37 124.37 48.4 113.17 113.17 44.0 117.67 117.67 43.7 1984–85 (a) Income tax 70.51 67.48 25.8 52.31 50.06 19.1 63.88 61.13 22.3 (b)NIC 22.50 21.53 8.2 24.62 23.56 9.0 22.50 21.53 7.8 (c) VAT 12.76 12.21 4.7 13.51 12.93 4.9 11.53 1103 4.0 (d) Other indirect taxes 19.88 19.02 7.3 21.88 20.94 8.0 19.16 18.33 6.7 (e) a+b+c+d 125.65 120.24 45.9 113.32 108.44 41.4 117.07 112.03 40.8 (f) Rates 6.36 6.09 2.3 6.90 6.60 2.5 7.48 7.16 2.6 (g) e+f 132.01 126.33 48.3 120.22 115.04 43.9 124.55 119.19 43.4 200 per cent, of gross average earnings 1982–83 (a) Income tax 91.41 95.69 28.6 72.91 76.32 22.8 84.64 88.60 25.6 (b)NIC 19.25 20.15 6.0 28.01 29.33 8.8 19.25 20.15 5.8 Income tax and NIC 110.66 115.84 34.6 100.92 105.65 31.6 103.89 108.75 31.4 1983–84 (a) Income tax 95.23 95.23 27.8 76.36 76.36 22.3 87.46 87.46 24.7 (b)NIC 21.15 21.15 6.2 30.83 30.83 9.0 21.15 21.15 6.0 Income tax and NIC 116.38 116.38 34.0 107.19 107.19 31.3 108.61 108.61 30.6 1984–85 (a) Income tax 100.88 96.53 27.7 79.67 76.24 21.8 92.03 88.07 24.3 (b)NIC 22.50 21.53 6.2 32.83 31.42 9.0 22.50 21.53 6.0 Income tax and NIC 123.38 118.06 33.8 112.50 107.66 30.8 114.53 109.60 30.3 500 per cent, of gross average earnings 1982–83 (a) Income tax 350.06 366.44 43.7 258.98 271.10 32.4 339.90 355.81 41.9 (b)NIC 19.25 20.15 2.4 38.50 40.30 4.8 19.25 20.15 2.4 Income tax and NIC 369.31 386.59 46.1 297.48 311.40 37.2 359.15 375.96 44.3 1983–84 (a) Income tax 365.32 365.32 42. 269.44 269.44 31.5 353.67 353.67 40.7 (b)NIC 21.15 21.15 2.5 42.30 42.30 4.9 21.15 21.15 2.4 Income tax and NIC 386.47 386.47 45.1 311.74 311.74 36.4 374.82 374.82 43.1 1984–85 (a) Income tax 388.68 371.94 42.6 285.87 273.56 31.3 375.41 359.25 40.6 (b)NIC 22.50 21.53 2.5 45.00 43.06 4.9 22.50 21.53 2.4 Income tax and NIC 411.18 393.47 45.1 330.87 316.62 36.3 397.91 380.78 43.0 700 per cent, of average earnings 1982–83 (a) Income tax 542.16 567.53 48.4 424.79 444.67 37.9 532.01 556.91 47.0 (b)NIC 19.25 20.15 1.7 38.50 40.30 3.4 19.25 20.15 1.7 Income tax and NIC 561.41 587.68 50.1 463.29 484.97 41.3 551.26 577.06 48.7 1983–84 (a) Income tax 570.88 570.88 47.6 440.54 440.54 36.7 559.23 559.23 46.2 (b)NIC 21.15 21.15 1.8 42.30 42.30 3.5 21.15 21.15 1.7 Income tax and NIC 592.03 592.03 49.4 482.84 482.84 40.3 580.38 580.38 47.9 1984–85 (a) Income tax 607.55 58.39 47.6 468.14 447.98 36.7 594.28 568.69 46.1 (b)NIC 2.50 21.53 1.8 45.00 43.06 3.5 22.50 21.53 1.7 Income tax and NIC 630.05 602.92 49.3 513.14 491.04 40.2 616.78 590.22 47.8 1,000 per cent, of average earnings 1982–83 (a) Income tax 830.30 869.16 51.9 700.13 732.90 43.7 820.15 858.53 50.9
Single Married both working Married couple +2 children £ per week £ per week 1983–84 prices Per cent, of gross income £ per week £ per week 1983–84 prices Per cent, of gross income £ per week £ per week 1983–84 prices Per cent, of gross income (b)NIC 19.25 20.15 1.2 38.50 40.30 2.4 19.25 20.15 1.2 Income tax and NIC 849.55 889.31 53.1 738.63 773.20 46.1 839.40 878.68 52.1 1983–84 (a) Income tax 879.22 879.22 51.3 732.72 732.72 42.8 867.57 867.57 50.3 (b)NIC 21.15 21.15 1.2 42.30 42.30 2.5 21.15 21.15 1.2 Income tax and NIC 900.38 900.38 52.6 775.02 775.02 45.2 888.72 888.72 51.5 1984–85 (a) Income tax 935.88 895.58 51.3 779.44 745.88 42.7 922.61 882.88 50.2 (b)NIC 22.50 21.53 1.2 45.00 43.06 2.5 22.50 21.53 1.2 Income tax and NIC 958.38 917.11 52.5 824.44 788.94 45.2 945.11 904.41 51.4 2,000 per cent, of average earnings 1982–83 (a) Income tax 1,790.78 1,874.59 55.9 1,660.61 1,738.33 51.9 1,780.63 1,863.96 55.4 (b)NIC 19.25 20.15 0.6 38.50 40.30 1.2 19.25 20.15 0.6 Income tax and NIC 1,810.03 1,894.74 56.5 1,699.11 1,778.63 53.1 1,799.88 1,884.11 56.0 1983–84 (a) Income tax 1,907.02 1,907.02 55.7 1,758.44 1,758.44 51.3 1,895.37 1,895.37 55.1 (b)NIC 21.15 21.15 0.6 42.30 42.30 1.2 21.15 21.15 0.6 Income tax and NIC 1,928.17 1,928.17 56.3 1,800.74 1,800.74 52.6 1,916.52 1,916.52 55.7 1984–85 (a) Income tax 2,030.28 1,942.85 55.7 1,871.76 1,791.16 51.3 2,017.01 1,930.15 55.1 (b)NIC 22.50 21.53 0.6 45.00 43.06 1.2 22.50 21.53 0.6 Income tax and NIC 2,052.78 1,964.38 56.3 1,916.76 1,834.22 52.5 2,039.51 1,951.68 55.7 Notes to tables: 1. Income tax payments are calculated on the assumption that households have no extra tax relief apart from the standard allowances. Earners, including earning wives, are assumed to pay Class 1 NI contributions at the contracted-in rate (currently 9 per cent. of earnings). 2. The working couple are assumed to have joint earnings of the various multiples of average gross male earnings—in order to facilitate comparisons with the other household types. However, in order to calculate NI contributions above average earnings it is assumed that the joint earnings are split between husband and wife in the ratio 60:40. In parctice, of course, there are few two-earner households whose joint earnings would be as low as 50 per cent. of average male earnings. 3. Average earnings as used here are the average gross weekly earnings of full-time men, whose pay is unaffected by absence, all occupations, all industries and services, Great Britain, monthly financial year averages. Figures for 1983–84 and 1984–85 are illustrative estimates. 4. For the married couple with two children, the percentage column expresses taxes as a percentage of gross earnings plus child benefit. For this purpose, child benefit is calculated at an average weekly rate through each financial year. For the years shown here average weekly child benefit rates for two children are: 1982–83–£10.94; 1983–84–£12.17;1984–85–£13.26.