§ Mr. David NicholsonTo ask the Chancellor of the Exchequer how many tax units paid the basic rate of tax only in 1979–80, 1983–84, and for the latest available financial year; what the total revenue received in respect of those units was, in each of the three years; and what percentage this was of total income tax revenue.
§ Mr. Norman LamontEstimates are as follows:
Tax units liable at basic rate only Year Number of tax units1 (million) Tax liability (£ million) Percentage of total tax liability (per cent.) 1979–802 220.9 18,500 81 1983–84 19.6 27,200 78 1988–893 19.7 31,100 70
Percentage of gross income paid in income tax, NIC and VAT Multiple of average male earnings ½ 1 1½ 2 3 5 10 One earner couple with 2 children under 11 1978–79 Income tax and NIC 2.5 20.9 26.2 27.9 34.8 48.8 65.6 VAT — 2.6 2.7 — — — — 1988–89 Income tax and NIC 6.1 20.0 23.2 24.8 29.9 33.9 37.0 VAT — 5.1 5.7 — — — — Two earner couple with 2 children under 11 1978–79 Income tax and NIC -4.6 12.9 21.8 26.2 31.2 36.2 52.3 VAT — 3.4 3.3 — — — — 1988–89 Income tax and NIC -5.6 14.1 21.3 24.5 27.3 30.9 35.5 VAT — 6.1 6.1 — — — — Notes:
Child benefit treated as negative income tax for consistency with 1978–79 when there were still child tax allowances.
Two earner couple assumed to jointly earn the multiple of male average earnings, split 60 per cent. earned by the husband and 40 per cent. by the wife.