§ Mr. Ralph Howellasked the Chancellor of the Exchequer what percentage of the income of a married man with two children, on average earnings, is taken in tax, but also taking into account social security contributions and child benefit, or equivalent; and if he will set out the information in the manner of the answer to the hon. Member for Norfolk, North on 31 January 1980, Official Report, column 770.
§ Mr. MooreThe information requested is given in the table: 51W
Average production worker's wage in £ sterling Percentage of income paid in income tax and social security contributions (less child benefit) United Kingdom 8,080 20 Belgium 6,870 12 (13) Denmark 10,680 15 (37) France 6,360 5 Germany 9,480 24 Greece 3,880 7 Ireland 6,830 22 Italy 5,575 17 Luxembourg 7,410 7 Netherlands 8,570 32 USA 12,240 15 (16) Japan 12,990 14 (20) Notes:
1. Information on average earnings in other EEC countries, the United States of America and Japan is not available. The comparison has been made instead for all the countries on the basis of estimates of the income of an average production worker as at 31 December 1983. These figures are derived from updating the published OECD figures for 1982. Although they relate to broadly similar groups of people, the average production worker may be at very different points in the national income distributions in the different countries.
2. Conversions to sterling have been made at the exchange rates prevailing on 30 December 1983. These exchange rates may not fully reflect differences in consumers' purchasing power between the United Kingdom and the other countries concerned.
3. All tax, social security and child benefit figures used relate to the year 1983 or 1983–84.
4. In computing tax liabilities account has been taken of personal allowances and reliefs, minimum deductions for expenses, allowances —if any — for social security contributions, and any other standard reliefs.
5. The basic rate of child benefit or analogous payment has been taken into account in the figures. No child benefit is payable in the United States of America, and none for a two-child family in Japan.
6. For the United Kingdom it has been assumed that the employee is contracted-in for national insurance.
7. The figures in brackets include local income taxes at typical rates.