§ Dr. McDonaldasked the Chancellor of the Exchequer if he will update to 1987–88 the information on tax and national insurance contributions provided in his reply of 30 January to the hon. Member for Thurrock,Official Report, columns 413–16.
§ Mr. Norman Lamont[pursuant to his reply, 25 March 1987, c.216]: The following table shows(a) income tax plus national insurance contributions less child benefit at current prices and(b) income tax plus national insurance contributions less child benefit as a percentage of gross income. The calculations assume that the taxpayer has no reliefs other than the appropriate personal allowances and that national insurance contributions are at the contracted-in rate. Average earnings are those for full time males and part-time females paid at adult rates whose pay was not affected by absence. Figures for 1986–87 and 1987–88 are provisional.
a table showing the cost to the Exchequer of an increase of £100 in each of the allowances at the standard rate of income tax.
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§ Mr. Norman Lamont[pursuant to his reply, 6 April 1987, c.76]: The estimated direct revenue costs in a full year at 1987–88 income levels for each of the main personal allowances are as follows. The calculation assumes that the increase in each allowance would reduce liability at the basic rate of tax only.
Allowance Cost at 1987–88 income levels £ millions Single person's 250 Wife's earned income 105 Married man's 275 Additional personal 12 Widow's bereavement 2 Married age (taxpayers aged 65 to 79) 22 Married age (taxpayers aged 80 and over) 4 Single age (taxpayers aged 65 to 79) 24 Single age (taxpayers aged 80 and over) 4