Personal Taxation (Hansard, 27 March 1986)

§ Mr. Moore

Personal income tax systems are complex and the details differ substantially from country to country.

The information given in the tables below provides some indication of the rates and structures of taxation levied at national level in the countries mentioned.

Table 1 Income Tax Thresholds in £—employment income
	Single Person	Married Couple with no dependent children
France	4,215	4,635
Japan	2,475	3,385
Canada	2,130	3,970
USA	1,810	3,135
West Germany	1,795	3,100

Notes:

(a) The thresholds represent the gross employment income at which liability to tax begins.
(b) the thresholds are those for 1986, except in the case of France where the 1985 thresholds are quoted. This is because France will not fix its rate for 1986 until the end of the year.
(c) It is assumed in the case of the married couple that the husband is the sole earner.
(d) All thresholds take account of the universal minimum deductions for expenses, personal allowances, the deductability, where applicable, of social security contributions and other standard reliefs.
(e) The thresholds have been converted to sterling at the purchasing power equivalent of sterling in Novermber 1985 (the latest date for which we have figures). The purchasing power equivalents are calculated on the basis of updated OECD figures.

Table 2 Rates of tax on bands of net taxable employment income in £ (i) France Single person
Taxable income	Rate per cent.
0–1,278	0
1,279–1,336	5
1,337–1,584	10
1,585–2,504	15
2,505–3,220	20
3,221–4,049	25
4,050– 4,894	30
4,895–5,647	35
5,648–9,408	40
9,409–12,940	45
12,941–15,304	50
15,306–17,411	55
17,412–19,734	60
Over 19,734	65

Married couple with no dependent children
Taxable income	Rate per cent.
0–2,555	0
2,556–2,670	5
2,671–3,167	10
3,168–5,009	15
5,010–6,439	20
6,440–8,090	25
8,091–9,788	30
9,789–11,293	35
11,294–18,816	40
18,817–25,879	45
25,880–30,611	50
30,612–34,821	55
34,822–39,468	60
Over 39,468	65

There are reductions in tax as follows:—

Tax liability up to £1,855: 8 per cent.

Tax liability up to £2,320: 7.99 per cent-3.01 per cent. (reducing)

Tax liability up to £2,780: 3 per cent.

602W

(ii) Japan Single person/married couple with no dependent children
Taxable income	Rate per cent.
0–1,225	10.5
1,226–2,941	12
2,942–4,902	14
4,903–7,353	17
7,354–9,804	21
9,805–14,706	25
14,707–19,608	30
19,609–24,510	35
24,511–29,412	40
29,413–36,765	45
36,766–49,020	50
49,021–73,529	55
73,530–122,549	60
122,550–196,078	65
Over 196,078	70

(iii) Canada Single person/married couple with no dependent children
Taxable income	Rate per cent.
0– 599	6
600– 1,198	16
1,199– 2,395	17
2,396– 3,593	18
3,594– 5,988	19
5,989– 8,383	20
8,384–10,778	23
10,779–16,766	25
16,767–28,742	30
Over 28,742	34

A surcharge is levied where the tax exceeds £2,750 and an additional surcharge of 5 per cent. is levied where tax exceeds £6,875.

(iv) United States of America Single person
Taxable income	Rate per cent.
0–1,333	0
1,334–1,973	11
1,974–2,554	12
2,555–3,769	14
3,770–4,930	15
4,931–6,263	16
6,264–7,484	18
7,485–8,704	20
8,705–10,559	23
10,560–13,634	26
13,635–16,710	30
16,711–19,785	34
19,786–24,075	38
24,076–32,081	42
32,082–47,457	48
Over 47,457	50

Married couple with no dependent children making a joint return
Taxable income	Rate per cent.
0– 1,973	0
1,974– 3,194	11
3,195– 4,409	12
4,410– 6,903	14
6,904– 9,285	16
9,286–11,720	18
11,721–14,274	22
14,275–17,349	25
17,350–20,419	28
20,420–26,570	33
26,571–34,812	38
34,813–49,662	42
49,663–63,468	45
63,469–94,220	49
Over 94,220	50