§ Mr. Wrigglesworthasked the Chancellor of the Exchequer (1) what is his estimate of the size of the cut in the basic rate of income tax required in 1985–86 to reduce the total tax payments (income tax, national insurance contributions, indirect taxes less child benefit where applicable) for those on 50 per cent., 75 per cent., 100 per cent., 150 per cent. and 200 per cent. of national average earnings for single people, married couples and
Marginal tax rates* Single Percentage Married Married with two children Percentage of average earnings 75 and 100 150 75 and 100 150 75 and 100 150 1978–79 47.7 42.0 49.0 43.5 46.1 40.3 1979–80 46.6 41.2 48.1 42.8 45.1 39.5 1980–81 47.0 41.3 48.3 42.8 45.5 39.7 1981–82 48.3 41.9 49.7 43.4 46.8 40.2 1982–83 48.9 41.7 50.2 43.1 47.5 40.0 1983–84 49.3 41.8 50.6 43.3 47.9 40.2 1984–85 49.7 42.3 50.9 43.7 48.7 41.1 1985–86 49.7 42.3 50.9 43.7 48.7 41.1 * Including income tax, NICs, and estimates of indirect tax payments. The latter were obtained from the 1983 Family Expenditure Survey using the illustrative assumption that 10 per cent. of any change in disposable income is saved.
590Wmarried couples with two children to the same proportion of gross earnings as in 1978–79; and if he will give an equivalent estimate for 1986–87 on the basis of the conventional assumptions of index-linked allowances and duties;
(2) what is his estimate of the size of the cut in the basic rate of incone tax required in 1985–86 and 1986–87 financial years to reduce total tax payments (income tax, national insurance contributions, indirect taxes less child benefit where applicable) for those on 50 per cent., 100 per cent., 150 per cent. and 200 per cent. of average earnings for single people, married couples and married couples with two children to the same amount in constant prices as in 1978–79.
§ Mr. MooreThe available information is in the table. Figures for 50 per cent. and 200 per cent. of average earnings are not given, because indirect tax payments cannot reliably be estimated at these levels.
Reductions in basic rate of income tax required to reduce total tax payments to their 1978–79 levels at percentages of average earnings Pence 1985–86 1986–87 Single Married Married with 2 children Single Married Married with 2 children As a percentage of gross earnings 75 5.2 7.1 6.4 5.3 7.2 7.3 100 4.3 5.3 5.1 4.4 5.4 5.7 150 3.5 3.9 4.1 3.6 4.0 4.5 In constant prices 100 12.6 14.9 12.5 14.5 17.0 14.6 150 11.3 12.7 11.2 13.1 14.6 13.2
§ Mr. Wrigglesworthasked the Chancellor of the Exchequer what is his estimate of the marginal tax rate (defined as the proportion of additional earnings absorbed in income tax, national insurance contributions and indirect taxation) for each year since 1978–79 on average and for single people, married couples and married couples with two children at 75 per cent., 100 per cent., 150 per cent., 200 per cent. and 500 per cent. of average earnings.
§ Mr. MooreEstimates of marginal tax rates defined in the way requested are in the table. Figures for 200 per cent. and 500 per cent. of average earnings are not given because indirect tax payments cannot reliably be estimated at these levels. An estimate of the marginal tax rate on average is not readily available.