§ Mr. Hordernasked the Chancellor of the Exchequer (1) at what proportion of income of a married man with two children on average earnings, income tax and national insurance contribution has been taken, and at what rate in 1954, 1960, 1970, 1975, 1979 and in each succeeding year, including the position of such a family under the proposal contained in his Budget statement;
(2) what proportion of earnings has been taken up by income tax and national insurance contributions, shown
National Insurance Contributions (NIC) Income Tax (IT) less Child Benefit (CB) or Family Allowance (FAM) NIC plus IT less CBI/FAM per cent. of gross earnings marginal rate per cent. per cent. of gross earnings marginal rate per cent. per cent. of gross earnings marginal rate per cent. 1954–55 2.8 — -2.9 9.7 -0.1 9.7 1960–61 3.4 — 0.6 16.5 4.0 16.5 1970–71 5.9 3.25 11.4 32.1 17.3 35.3 1975–76 5.5 5.5 18.0 35.0 23.5 40.5 1978–79 6.5 6.5 12.9 33.0 19.4 39.5 1979–80 6.5 6.5 11.0 30.0 17.5 36.5 1980–81 6.75 6.75 12.2 30.0 19.0 36.7 1981–82 7.75 7.75 12.7 30.0 20.4 37.7 1982–83 8.75 8.75 11.8 30.0 20.5 38.7 1983–84 9.0 9.0 10.8 30.0 19.8 39.0 1984–85 9.0 9.0 10.0 30.0 19.0 39.0 The calculations assume that the taxpayer has no reliefs other than the married man's allowance and (before 1979–80) appropriate child tax allowances. National insurance contributions are at the contracted-in rate.
For illustration, it has been assumed that earnings will increase by 7 per cent. between 1982–83 and 1983–84 and by 6½ per cent. between 1983–84 and 1984–85; and that child benefit will be increased by 5½ per cent. in November 1984 in line with the assumptions used in the public expenditure White Paper (Cmnd. 9143). The actual increase will be announced in June.