HC Deb 31 January 1985 vol 72 cc322-3W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table showing the percentage of earnings absorbed by income tax and employees' social security contributions at different levels of earnings in the United Kingdom, France, Germany, and the United States of America and Japan, respectively, using the most recently available figures, and in the manner of his Answer to the hon. Member for Norfolk, North on 15 February, Official Report, columns 198–200.

Percentage of earnings absorbed by income tax and social security contributions
Earnings per annum £3,000 £5,000 £9,000 £12,000 £16,000 £20,000 £30,000 £50,000
Single Person
United Kingdom 19 27 32 34 34 34 38.5 46
France 13 15 23 26 29 31 35 41
Germany 23 28 34 39 39 42 46 50
United States of America 7 (7) 11(12) 16(17) 18(20) 20(23) 24(28) 28(34) 31(40)
Japan 10(10) 13(14) 15(17) 16(19) 17(21) 17(23) 19(26) 24(33)
Married couple
United Kingdom 9 20 28 31 31 32 37 44.5
France 13 14 17 19 20 23 27 32
Germany 17 23 28 30 28 30 34 41
United States of America 7 (7) 7 (7) 12(12) 14(15) 16(17) 18(20) 22(25) 27(33)
Japan 10(10) 10(11) 13(15) 14(17) 16(19) 16(21) 18(25) 19(26)
Married couple with two dependent children
United Kingdom 0 6 21 25 27 28 34 43
France 0 2 9 11 13 15 21 27
Germany 1 11 21 26 23 26 31 39
United States of America 7 (7) 7 (7) 10(10) 12(12) 14(15) 16(18) 21(23) 26(31)
Japan 10(10) 10(10) 10(11) 12(13) 14(16) 14(18) 16(22) 21(30)

Notes

1. The figures shown relate to income of 1984 (1984–85 in the case of the United Kingdom).

2. Conversions were made at the exchange rates prevailing on 23 January 1985. They may 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 United States of America and Japan include local income taxes at typical rates.