§ Sir Brandon Rhys Williamsasked the Chancellor of the Exchequer what would be the cost in terms of revenue forgone if the maximum annual amount of income tax payable by any individual taxpayer, counting husbands and wives separately, were £100,000 or 40 per cent. of gross taxable income.
§ Mr. Norman LamontThe direct revenue cost would be about £450 million at 1986–87 income levels. This estimate makes no allowance for possible behavioural changes.
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§ Mr. Pikeasked the Chancellor of the Exchequer what estimate he has made of the cost to the Treasury of a cut in income tax basic rate of one penny.
§ Mr. Norman LamontThe direct revenue cost would be about £1.1 billion in 1987–88 and £1.45 billion in 1988–89.
§ Mr. Chapmanasked the Chancellor of the Exchequer what is his estimate of the loss of revenue in 1987–88 if (a) the basic rate of income tax was to be reduced by 2 per cent. and (b) the threshold for income tax liability was increased by 10 per cent. in real terms.
§ Mr. Norman LamontThe direct revenue costs in 1987–88 would be about £2.2 billion and £1.8 billion, respectively.