§ Mr. Meacherasked the Chancellor of the Exchequer what is the proportion of gross income paid in income tax, national insurance contributions and value added tax by a married man with a non-earning wife and two children at half, one, one and a half, two, three, five and 10 times national average earnings; and what were the comparable figures in 1979.
§ Mr. Norman LamontThe available figures for 1978–79 and 1986–87 are in the table. VAT payments cannot reliably be estimated at 50 per cent. or above 150 per cent. of average earnings.
Tax and national insurance contribution as a percentage of gross earnings for a married man with a non-earning wife and two children Multiple of average earnings 1978–79 1986–87 50 per cent. Income tax less child benefit -4.1 -3.4 National insurance contribution 6.5 9.0 100 per cent. Income tax less child benefit 14.4 12.8 National insurance contribution 6.5 9.0 Value added tax 2.6 4.8 150 per cent. Income tax less child benefit 20.6 18.2 National insurance contribution 5.6 8.0 Value added tax 2.7 5.2 200 per cent. Income tax less child benefit 23.7 21.6 National insurance contribution 4.2 6.0 300 per cent. Income tax less child benefit 32.0 29.8 National insurance contribution 2.8 4.0 500 per cent. Income tax less child benefit 47.1 40.5 National insurance contribution 1.7 2.4 1,000 per cent. Income tax less child benefit 64.8 50.2 National insurance contribution 0.8 1.2 Note:
Average earnings are taken to be the average gross weekly earnings of full-time males on adult rates with pay unaffected by absence. The figure for 1986–87 is illustrative and assumes 7½ per cent. growth on 1985–86. The estimates of value added tax are derived from the 1985 Family Expenditure Survey. The figures for income tax are shown net of child benefit: figures for income tax alone would not be comparable since 1978–79 figures are affected by child tax allowances.