HC Deb 31 January 1986 vol 90 cc644-5W
Mr. Wrigglesworth

asked the Chancellor of the Exchequer what is his estimate of the share of total personal incomes taken in direct and indirect taxation and social security contributions in each financial year from 1978–79 to 1985–86; and what comparable figures are available to him for the United States, France, West Germany and Japan, respectively.

Mr. Moore

The latest available estimates are for calendar years as follows. No comparable estimates are readily available for indirect taxation on households in countries other than the United Kingdom.

Percentage of total personal income
1978 1979 1980 1981 1982 1983
United Kingdom
Direct taxes on households 14.1 12.9 13.0 13.3 13.4 13.1
Social security contributions 2.9 2.8 2.9 3.3 3.7 4.0
Indirect taxes on consumers' expenditure 11.4 12.4 12.8 13.6 13.7 13.7
United States of America
Direct taxes on households 13.0 13.5 13.5 13.8 13.5 12.6
Social security contributions 3.3 3.5 3.5 3.6 3.6 3.7
France
Direct taxes on households 6.6 6.6 7.0 6.9 7.0 7.5
Social security contributions 5.9 6.7 7.2 6.9 7.2 7.5
German Federal Republic
Direct taxes on households 12.7 12.2 12.4 11.8 11.7 11.8
Social security contributions 9.2 9.2 9.2 9.5 9.8 9.7
Japan
Direct taxes on households 5.5 6.4 6.9 7.3 7.4 7.6
Social security contributions 3.6 4.1 4.0 4.2 4.5 4.4

Sources:

(i) Based on OECD "National Accounts 1971–1983" for direct taxes and social security contributions and total personal income.

(ii) CSO: "United Kingdom National Accounts" 1985 edition for consumers' expenditure.

The figures should be used with caution since the international comparisons are subject to limitations because of the differences between countries in their economic and financial structures and the degree of Government involvement in the provision of services. Also, "households" include unincorporated businesses for all countries referred to, except for the German Federal Republic.