§ Sir Brandon Rhys Williamsasked the Chancellor of the Exchequer if he will publish figures showing (a) the gross cost in 1987–88 of replacing all existing personal income tax allowances with tax-free, non-means-tested tax credits or basic incomes of £10 a week for each person aged 16 or over, (b) the additional costs of allowing each individual, counting husbands and wives separately, fixed amount tax discounts as follows: (i) £3 a week, £6 per week and £7.50 a week on earned income and (ii) £3, £6, £7.50, £21 and £30 per week on investment income including occupational pensions.
§ Mr. Norman LamontAssuming indexation of personal allowances, it is estimated that replacing all existing personal allowances with tax-free non-means-tested basic incomes of £10 per week for each person aged 16 or over would lead to a yield to the Exchequer of about billion in a full year at 1987–88 income levels. The offsetting costs from allowing tax discounts on earned and unearned incomes for each individual are estimated to be as follows:
Weekly tax discount on earned income (£)
Cost in a full year at 1987–88 income levels (£)
3.00 4 6.00 8 7.50 10
Weekly tax discount on investment income1 (£)
Cost in a full year at 1987–88 income levels (£)
3.00 3 6.00 5 7.50 6 21.00 10 30.00 12 1 Assuming that occupational pensions and the state retirement pension are treated as investment income.