§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will publish a table showing the percentage of earnings absorbed by income tax and employee's social security contributions at different levels of earnings in the United Kingdom, France, Germany, the United States of America and Japan, respectively (a) in 1979 and (b) in 1984.
§ Mr. MooreThe information requested, for selected levels of income and family responsibilities, is as follows: 207W
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United Kingdom France Germany USA Japan 1979 £5,000 29 19 29 18(20) 12(15) 1984 £5,000 27 15 28 11(12) 13(14) 1979 £9,000 31 24 37 25(29) 15(20) 1984 £9,000 32 23 34 16(17) 15(17) 1979 £12,000 31 27 36 28(34) 15(21) 1984 £12,000 34 26 39 18(20) 16(19) 1979 £16,000 34 29 40 31(38) 17(23) 1984 £16,000 34 29 39 20(23) 17(22) 1979 £20,000 37 32 42 33(41) 18(26) 1984 £20,000 34 31 42 24(28) 17(23) 1979 £30,000 44 36 46 37(46) 24(33) 1984 £30,000 38.5 35 46 28(34) 19(26) 1979 £50,000 50 41 50 40(50) 31(42) 1984 £50,000 46 42 50 31(40) 24(34) Married couple 1979 £1,500 6.5 10 16 6 (6) 8 (8) 1984 £1,500 0 13 17.5 7(7) 10(10) 1979 £3,000 17 10 16 8 (8) 9(10) 1984 £3,000 9 13 17.5 7(7) 10(10) 1979 £5,000 25 14 23 14(14) 11(13) 1984 £5,000 20 14 23 7 (7) 11(11) 1979 £9,000 29 17 28 19(20) 14(18) 1984 £9,000 28 18 28 12(12) 13(15) 1979 £12,000 29 19 25 22(24) 14(20) 1984 £12,000 31 19 30 14(15) 14(17) 1979 £16,000 32 22 27 25(28) 15(22) 1984 £16,000 31 20 28 16(17) 16(20) 1979 £20,000 36 24 29 28(33) 17(25) 1984 £20,000 32 23 30 18(20) 16(21) 1979 £30,000 42 28 35 33(40) 22(32) 1984 £30,000 37 28 34 22(25) 18(25) 1979 £50,000 49 35 42 38(46) 31(42) 1984 £50,000 44.5 32 41 27(33) 23(33) Married couple with two dependent children 1979 £1,500 0 0 0 6 (6) 8 (8) 1984 £1,500 0 0 1 7 (7) 10(10) 1979 £3,000 3 1 2 6 (6) 8 (8) 1984 £3,000 0 0 1 7.(7) 10(10) 1979 £5,000 17 5 14 10(10) 8 (9) 1984 £5,000 6 2 11 7(7) 10(10) 1979 £9,000 24 10 23 17(18) 12(15) 1984 £9,000 21 9 21 10(10) 10(11) 1979 £12,000 26 12 21 20(22) 12(16) 1984 £12,000 25 11 26 12(12) 12(14) 1979 £16,000 30 15 24 22(26) 14(20) 1984 £16,000 27 13 23 14(15) 14(16) 1979 £20,000 34 18 27 26(31) 15(22) 1984 £20,000 28 15 26 16(18) 14(18) 1979 £30,000 41 22 33 32(39) 21(30) 1984 £30,000 34 22 31 21(23) 16(22) 1979 £50,000 49 29 41 37(46) 29(40) 1984 £50,000 43 27 39 26(31) 22(31) Notes:
1. The figures shown relate to income of 1984 and 1979 (1984–85 and 1979–80 in the case of the United Kingdom).
2. Coversions were made for 1984 at the exchange rates prevailing on 4 February 1985 and for 1979 at the average exchange rates for 1979. They do not fully reflect differences in purchasing power between sterling and the other currencies.
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. The income of the married couple is assumed to be wholly income of the husband.
5. The percentages given for a married couple with two dependent children reflect the tax and social security contributions due less any child benefit payable in respect of the children.
6. It is assumed that the United Kingdom employee is contracted-in to the State pension scheme.
7. The figures in brackets for the USA and Japan include local income taxes at typical rates.