§ 21. Mr. Penhaligonasked the Chancellor of the Exchequer if he will estimate the proportion of the population which currently pays less income tax in real terms than in 1978–79.
§ Mr. HayhoeOver 99 per cent. of taxpayers will pay less income tax in 1985–86 than under a 1978–79 indexed tax regime.
§ 46. Mr. Chopeasked the Chancellor of the Exchequer how the burden of income tax in the United Kingdom on those with below average earnings compares with the United Kingdom's principal European competitors.
§ Mr. MooreThe table below gives the position for average, three quarters average and half average earnings for the United Kingdom, France, Germany and Italy.
United Kingdom France Germany Italy Income tax as percentage of average earnings Single person 22 9 20 16 Married couple 17 3 12 15 Income tax as percentage of three-quarters of average earnings Single person 19 6 15 13 Married couple 13 1 10 10 Income tax as percentage of half average earnings Single person 14 3 11 7 Married couple 4 1 6 4 Notes:
1. The figures given relate to the average production worker's wage in each country (estimated as at 1 April 1985), as that is the only average earnings figure available for all the countries shown.
2. The tax data used are for 1985–86 for the United Kingdom, 1985 for Germany and Italy, and 1984 for France (which will not set its tax rates for 1985 until the end of the year). The figures take account of personal reliefs, minimum deductions for expenses and other standard reliefs.
3. The income of the married couple is assumed to belong wholly to the husband.