§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer if he will update the information in his reply to the hon. Member for Blackburn (Mr. Straw) about
50 per cent. of average male earnings (£122.35 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £ per week1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88prices Percent. of gross income 1978–79 Income tax 7.91 15.90 17.0 4.42 8.88 9.5 0.00 0.00 0.0 3.26 6.55 6.3 NIC 3.02 6.07 6.5 3.02 6.07 6.5 3.02 6.07 6.5 3.02 6.07 5.9 Total 10.93 21.97 23.6 7.44 14.95 16.0 3.02 6.07 6.5 6.28 12.62 12.2 1987–88 Income tax 18.43 18.43 16.0 11.32 11.32 9.9 0.00 0.00 0.0 11.32 11.32 8.7 NIC 10.34 10.34 9.0 10.34 10.34 9.0 7.12 7.12 6.2 10.34 10.34 8.0 Total 28.77 28.77 25.0 21.66 21.66 18.9 7.12 7.12 6.2 21.66 21.66 16.7 1988–89 Income tax 18.06 17.37 14.8 10.90 10.48 8.9 0.00 0.00 0.0 10.90 10.48 8.0 NIC 11.01 10.59 9.0 11.01 10.59 9.0 7.59 7.30 6.2 11.01 10.59 8.0 Total 29.07 27.95 23.8 21.91 21.07 17.9 7.59 7.30 6.2 21.91 21.07 16.0
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75 per cent. of average male earnings (£183.52 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £per week 1987–88 prices Per cent. of gross income £per week £per week 1987–88prices Per cent. of gross income £per week £per week 1987–88prices Per cent. of gross income £ per week £ per week 1987–88prices Percent. of gross income 1978–79 Income Tax 15.56 31.27 22.4 12.07 24.26 17.3 5.28 10.61 7.6 10.80 21.70 14.5 NIC 4.52 9.08 6.5 4.52 9.08 6.5 4.52 9.08 6.5 4.52 9.08 6.0 VAT 1.80 3.62 2.6 1.67 3.35 2.4 2.02 4.07 2.9 1.82 3.67 2.4 Other indirect 6.24 12.54 9.0 7.19 14.46 10.3 8.27 16.63 11.9 7.00 14.07 9.4 Total of above 28.12 56.51 40.4 25.45 51.15 36.6 20.10 40.39 28.9 24.14 48.52 32.3 Domestic rates 2.38 4.79 3.4 2.35 4.72 3.4 2.89 5.80 4.1 2.37 4.76 3.2 Total 30.50 61.30 43.8 27.80 55.87 39.9 22.98 46.219 33.0 26.51 53.28 35.5 1987–88 Income Tax 33.94 33.94 19.7 26.83 26.83 15.6 14.24 14.24 8.3 26.83 26.83 14.4 NIC 15.51 15.51 9.0 15.51 15.51 9.0 14.13 14.13 8.2 15.51 15.51 8.3 VAT 8.33 8.33 4.8 7.72 7.72 4.5 8.88 8.88 5.2 7.88 7.88 4.2 Other indirect 14.06 14.06 8.2 15.76 15.76 9.1 18.37 18.37 10.7 15.69 15.69 8.4 Total of above 71.84 71.84 41.7 65.82 65.82 38.2 55.62 55.62 32.3 65.91 65.91 35.3 Domestic rates 6.98 6.98 4.0 6.85 6.85 4.0 8.45 8.45 4.9 6.83 6.83 3.7 Total 78.82 78.82 45.7 72.67 72.67 42.2 64.07 64.07 37.2 72.74 72.74 38.9 1988–89 Income Tax 33.36 32.08 18.2 26.19 25.18 14.3 13.67 13.14 7.4 26.19 25.18 13.2 NIC 16.52 15.88 9.0 16.52 15.88 9.0 15.05 14.47 8.2 16.52 15.88 8.3 VAT 9.27 8.91 5.0 8.57 8.24 4.7 9.76 9.38 5.3 8.67 8.33 4.4 Other indirect 15.06 14.48 8.2 16.83 16.18 9.2 19.42 18.68 10.6 16.62 15.98 8.4 Total of above 74.20 71.35 40.4 68.11 65.49 37.1 57.90 55.67 31.5 67.99 65.38 34.3 Domestic rates 8.00 7.69 4.4 7.81 7.51 4.3 9.58 9.21 5.2 7.76 7.46 3.9 Total 82.20 79.04 44.8 75.92 73.00 41.4 67.48 64.89 36.8 75.75 72.84 38.3 personal taxation of 27 March 1987, Official Report, columns 312–340, and 1 May 1987, Official Report, columns 291–294, to include the years 1988–89.
§ Mr. Norman Lamont[holding answer 18 April 1988]: The figures are given in the tables. For the intervening years I refer the hon. Member to my reply to the hon. Member for Blackburn (Mr. Straw) on 27 March 1987, at columns 312–40. For the second part of his question I refer the hon. Member to my reply to the hon. Member for Edinburgh, South (Mr. Griffiths) today.
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100 per cent. of average male earnings (£244.70 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £per week1987–88 prices Per cent. of gross income £per week £per week 1987–88 prices Per cent. of gross income £per week £per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Percent. of gross income 1978–79 Income tax 23.22 46.67 25.0 19.73 39.65 21.3 12.32 24.76 13.3 18.46 37.10 18.8 NIC 6.03 12.12 6.5 6.03 12.12 6.5 6.03 12.12 6.5 6.03 12.12 6.2 VAT 2.48 4.98 2.7 2.38 4.79 2.6 2.79 5.62 3.0 2.44 4.91 2.5 Other indirect 7.59 15.24 8.2 8.55 17.19 9.2 9.57 19.23 10.3 7.98 16.03 8.1 Total of above 39.31 79.01 42.4 36.70 73.75 39.5 30.71 61.72 33.1 34.91 70.16 35.6 Domestic rates 2.87 5.77 3.1 2.70 5.43 2.9 30.8 6.18 3.3 2.79 5.60 2.8 Total 42.18 84.78 45.5 39.40 79.18 42.5 33.79 67.91 36.4 37.70 75.76 38.5 1987–88 Income tax 49.45 49.45 21.5 42.34 42.34 18.4 29.75 29.75 12.9 42.34 42.34 17.3 NIC 20.68 20.68 9.0 20.68 20.68 9.0 18.84 18.84 8.2 20.68 20.68 8.5 VAT 11.18 11.18 4.9 10.82 10.82 4.7 12.28 12.28 5.3 11.39 11.39 4.7 Other indirect 17.50 17.50 7.6 19.20 19.20 8.4 21.48 21.48 9.3 18.41 18.41 7.5 Total of above 98.81 98.81 43.0 93.04 93.04 40.5 82.36 82.36 35.8 92.82 92.82 38.0 Domestic rates 8.48 8.48 3.7 7.94 7.94 3.5 9.01 9.01 3.9 8.12 8.12 3.3 Total 107.29 107.29 46.7 100.98 100.98 43.9 91.37 91.37 39.8 100.94 100.94 41.3 1988–89 Income tax 48.65 46.78 19.9 41.49 39.89 17.0 28.96 27.85 11.8 41.49 39.89 16.0 NIC 22.02 21.17 9.0 22.02 21.17 9.0 20.07 19.30 8.2 22.02 21.17 8.5 VAT 12.45 11.97 5.1 12.04 11.58 4.9 13.57 13.04 5.5 12.60 12.11 4.9 Other indirect 18.78 18.06 7.7 20.56 19.77 8.4 22.79 21.91 9.3 19.56 18.80 7.5 Total of above 101.91 97.99 41.6 96.12 92.42 39.3 85.39 82.10 34.9 95.66 91.99 36.9 Domestic rates 9.74 9.37 4.0 9.08 8.73 3.7 10.24 9.85 4.2 9.25 8.90 3.6 Total 111.65 107.36 45.6 105.19 101.15 43.0 95.63 91.95 39.1 104.92 100.88 40.5
426W427W
150 per cent. of average male earnings (£367.05 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £per week1987–88 prices Per cent. of gross income £per week £per week1987–88 prices Per cent. of gross income £per week £per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Percent. of gross income 1978–79 Income tax 38.53 77.43 27.7 35.04 70.42 25.2 27.64 55.55 19.9 33.77 67.87 23.4 NIC 7.80 15.68 5.6 7.80 15.68 5.6 9.05 18.19 6.5 7.80 15.68 5.4 VAT 3.89 7.82 2.8 3.88 7.80 2.8 4.27 8.58 3.1 3.74 7.52 2.6 Other indirect 10.40 20.90 7.5 11.39 22.90 8.2 12.05 24.21 8.7 10.01 20.13 6.9 Total of above 60.62 121.83 43.5 58.11 116.79 41.7 53.01 106.53 38.1 55.33 111.19 38.3 Domestic rates 3.89 7.83 2.8 3.44 6.92 2.5 3.44 6.92 2.5 3.66 7.36 2.5 Total 64.51 129.66 46.3 61.56 123.72 44.2 56.45 113.44 40.6 58.99 118.55 40.9 1987–88 Income tax 80.48 80.48 23.3 73.36 73.36 21.3 60.77 60.77 17.6 73.36 73..36 20.4 NIC 26.55 26.55 7.7 26.55 26.55 7.7 31.02 31.02 9.0 26.55 26.55 7.4 VAT 17.21 17.21 5.0 17.39 17.39 5.0 18.83 18.83 5.5 18.83 18.83 5.2 Other indirect 24.80 24.80 7.2 26.49 26.49 7.7 27.48 27.48 8.0 24.18 24.18 6.7 Total of above 149.05 149.05 43.2 143.80 143.80 41.7 138.11 138.11 40.1 142.92 142.92 39.8 Domestic rates 11.67 11.67 3.4 10.25 10.25 3.0 10.11 10.11 2.9 10.85 10.85 3.0 Total 160.72 160.72 46.6 154.05 154.05 44.7 148.21 148.21 43.0 153.77 153.77 42.8 1988–89 Income tax 79.24 76.19 21.6 72.07 69.30 19.6 59.55 57.26 16.2 72.07 69.30 18.9 NIC 27.45 26.39 7.5 27.45 26.39 7.5 33.03 31.76 9.0 27.45 26.39 7.2 VAT 19.27 18.53 5.2 19.46 18.71 5.3 20.91 20.11 5.7 21.00 20.19 5.5 Other indirect 26.75 25.72 7.3 28.56 27.46 7.8 29.28 28.15 8.0 25.84 24.85 6.8 Total of above 152.70 146.83 41.6 147.54 141.87 40.2 142.77 137.28 38.9 146.36 140.74 38.4 Domestic rates 13.48 12.96 3.7 11.79 11.34 3.2 11.51 11.07 3.1 12.45 11.98 3.3 Total 166.18 159.79 45.3 159.33 153.20 43.4 154.29 148.35 42.0 158.82 152.71 41.6
200 per cent. of average male earnings (£489.40 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income 1978–79 Income tax 54.74 110.01 29.5 50.51 101.51 27.2 42.95 86.32 23.1 49.08 98.64 25.7 NIC 7.80 15.68 4.2 7.80 15.68 4.2 12.06 24.24 6.5 7.80 15.68 4.1 Total 62.54 125.69 33.7 58.31 117.19 31.4 55.01 110.55 29.6 56.88 114.31 29.8 1987–88 Income tax 121.47 121.47 26.4 109.90 109.90 23.9 91.80 91.80 20.0 109.90 109.90 23.2 NIC 26.55 26.55 5.8 26.55 26.55 5.8 41.36 41.36 9.0 26.55 26.55 5.6 Total 148.02 148.02 32.2 136.45 136.45 29.7 133.16 133.16 29.0 136.45 136.45 28.8 1988–89 Income tax 120.05 115.43 24.5 108.59 104.42 22.2 90.14 86.67 18.4 108.59 104.42 21.5 NIC 27.45 26.39 5.6 27.45 26.39 5.6 44.05 42.36 9.0 27.45 26.39 5.4 Total 147.50 141.83 30.1 136.04 130.81 27.8 134.19 129.03 27.4 136.04 130.81 27.0
300 per cent. of average male earnings (£734.10 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income 1978–79 Income tax 102.89 206.78 37.0 96.54 194.02 34.7 770.6 154.87 27.7 94.23 189.38 33.2 NIC 7.80 15.68 2.8 7.80 15.68 2.8 15.04 30.23 5.4 7.80 15.68 2.8 Total 110.69 222.46 39.8 104.34 209.69 37.5 92.10 185.10 33.1 102.03 205.05 36.0 1987–88 Income tax 232.71 232.71 33.8 219.42 219.42 31.8 163.92 163.92 23.8 219.42 219.42 31.2 NIC 26.55 26.55 3.9 26.55 26.55 3.9 51.37 51.37 7.5 26.55 26.55 3.8 Total 259.26 259.26 37.6 245.97 245.97 35.7 215.29 215.29 31.2 245.97 245.97 34.9 1988–89 Income tax 217.93 209.55 29.7 206.47 198.53 28.1 161.36 155.16 22.0 206.47 198.53 27.6 NIC 27.45 26.39 3.7 27.45 26.39 3.7 53.88 51.81 7.3 27.45 26.39 3.7 Total 245.38 235.95 33.4 233.92 224.93 31.9 215.24 206.97 29.3 233.92 224.93 31.2 428W429W
500 per cent. of average male earnings (£1,223.50 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income 1978–79 Income tax 234.37 471.02 50.5 226.44 455.08 48.8 157.63 316.79 340 223.55 449.27 47.7 NIC 7.80 15.68 1.7 7.80 15.68 1.7 15.60 31.35 3.4 7.80 15.68 1.7 Total 242.17 486.69 52.2 234.24 470.76 50.5 173.23 348.14 37.3 231.35 464.95 49.3 1987–88 Income tax 501.00 501.00 43.6 485.19 485.19 42.2 354.18 354.18 30.8 485.19 485.19 41.7 NIC 26.55 26.55 2.3 26.55 26.55 2.3 531.0 531.0 4.6 26.55 26.55 2.3 Total 527.55 527.55 45.9 511.74 511.74 44.5 407.28 407.28 35.4 511.74 511.74 44.0 1988–89 Income tax 413.69 397.79 33.8 402.23 386.77 32.9 337.98 324.99 27.6 402.23 386.77 32.5 NIC 27.45 26.39 2.2 27.45 26.39 2.2 54.90 52.79 4.5 27.45 26.39 2.2 Total 441.14 424.18 36.1 429.68 413.16 35.1 392.88 377.78 32.1 429.68 413.16 34.7
700 per cent. of average male earnings (£1,712.90 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income 1978–79 Income tax 387.10 777.96 59.6 378.32 760.32 58.2 270.44 543.51 41.6 375.13 753.91 57.3 NIC 7.80 15.68 1.2 7.80 15.68 1.2 15.60 31.35 2.4 7.80 15.68 1.2 Total 394.90 793.64 60.8 386.12 775.99 59.4 286.04 574.86 44.0 382.93 769.58 58.5 1987–88 Income tax 776.76 776.76 48.3 760.95 760.95 47.3 600.31 600.31 37.3 760.95 760.95 46.9 NIC 26.55 26.55 1.7 26.55 26.55 1.7 53.10 53.10 3.3 26.55 26.55 1.6 Total 803.31 803.31 49.9 787.50 787.50 49.0 653.41 653.41 40.6 787.50 787.50 48.5 1988–89 Income tax 609.45 586.02 35.6 586.99 575.00 34.9 533.74 513.22 31.2 597.99 575.00 34.6 NIC 27.45 26.39 1.6 27.45 26.39 1.6 54.90 52.79 3.2 27.45 26.39 1.6 Total 636.90 612.42 37.2 625.44 601.40 36.5 588.64 566.01 34.4 625.44 601.40 36.2
1,0000 per cent. of average male earnings (£2,447.00 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income 1978–79 Income tax 618.17 1,242.35 66.6 609.39 1,224.70 65.7 475.02 954.66 51.2 606.20 1,218.29 65.0 National insurance contributions 7.80 15.68 0.8 7.80 15.68 0.8 15.60 31.35 1.7 7.80 15.68 0.8 TOTAL 625.97 1,258.03 67.5 617.19 1,240.38 66.5 490.62 986.01 52.9 614.00 1,233.97 65.8 1987–88 Income tax 1,190.40 1,190.40 51.8 1,174.59 1,174.59 51.1 1,001.99 1,001.99 43.6 1,174.59 1,174.59 50.8 National insurance contributions 26.55 26.55 1.2 26.55 26.55 1.2 53.10 53.10 2.3 26.55 26.55 1.1 TOTAL 1,216.95 1,216.95 53.0 1,210.14 1,201.14 52.3 1,055.09 1,055.09 45.9 1,201.14 1,201.14 51.9 1988–89 Income tax 903.09 868.37 36.9 891.63 857.35 36.4 827.38 795.57 33.8 891.63 857.35 36.2 National insurance contributions 27.45 26.39 1.1 27.45 26.39 1.1 54.90 52.79 2.2 27.45 26.39 1.1 TOTAL 930.54 894.77 38.0 919.08 883.75 37.6 882.28 848.36 36.1 919.08 883.75 37.3
2,000 per cent. of average male earnings (£4,894.00 a week in 1988–89) Single Married no children Married both working Married 2 Children £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income £ per week £ per week 1987–88 prices Per cent. of gross income 1978–79 Income tax 1,388.41 2,790.32 74.8 1,379.63 2,772.67 74.3 1,236.34 2,484.70 66.6 1,376.44 2,766.26 74.0 NIC 7.80 15.68 0.4 7.80 15.68 0.4 15.60 31.35 0.8 7.80 15.68 0.4 Total 1,396.21 2,805.99 75.2 1,387.43 2,788.35 74.8 1,251.94 2,516.05 67.5 1,384.24 2,781.94 74.4 1987–88 Income tax 2,569.20 2,569.20 55.9 2,553.39 2,553.39 55.6 2,380.79 2,380.79 51.8 2,553.39 2,533.39 55.4 NIC 26.55 26.55 0.6 26.55 26.55 0.6 53.10 53.10 1.2 26.55 26.55 0.6 Total 2,595.75 2,595.75 56.5 2,579.94 2,579.94 56.1 2,433.89 2,433.89 53.0 2,579.94 2,579.94 56.0 1988–89 Income tax 1,881.89 1,809.54 38.5 1,870.43 1,798.52 38.2 1,806.18 1,736.74 36.9 1,870.43 1,798.52 38.1 NIC 27.45 26.39 0.6 27.45 26.39 0.6 54.90 52.79 1.1 27.45 26.39 0.6 Total 1,909.34 1,835.94 39.0 1,897.88 1,824.92 38.8 1,861.08 1,789.53 38.0 1,897.88 1,824.92 38.7 Notes to tables:
- 1. Income tax payments are calculated on the assumption that the tax units have no other tax reliefs apart from the standard allowances. Earners, including working wives, are assumed to pay class I national insurance contributions at the contracted in rate. The figures for national insurance contributions are financial year averages.
- 2. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. The levels of average earnings in each year are as follows: 1978–79, £92.80 per week; 1987–88, £229.80 per week (assuming growth of 7½ per cent. on 1986–87); 1988–89, £244.70 per week
430 431 (assuming growth of 6½ per cent. on 1987–88. - 3. The two-earner married couple are assumed to have joint earnings of the various multiples of average earnings. In calculating disposable income it is assumed that the joint earnings are split between husband and wife in the ratio 60:40.
- 4. For the married couple with two children, the percentage column expresses taxes, and so on, as percentages of gross earnings plus child benefit. For this purpose financial year averages are used for child benefit.
- 5. The estimates of indirect taxes are derived from the 1985 family expenditure survey and are based on the illustrative assumption that 10 per cent. of disposable income is saved. Estimates cannot reliably be made outside the income range for which figures are shown. There are also quite wide variations in spending patterns between households with similar incomes and compositions and, because of sampling variation, there can be substantial differences between the estimates obtained from different family expenditure surveys.
§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer (1) if, with reference to tables 1 and 2 of the Budget press release on independent taxation of husband and wife, he will give the basis on which tax liability under current arrangements has been allocated to a wife's income for the purposes of determining the reduction on the new arrangements;
(2) how family unearned income is allocated between husband and wife for the purposes of computing wife's income in table 1 of the Budget press release on independent taxation of husband and wife.
§ Mr. Norman Lamont[holding answer 9 May 1988]: Estimates of individuals with reduced income tax liability and their average reductions following the introduction of independent taxation used data from the survey of personal incomes for 1985–86 which was projected to 1990–91 in line with Treasury economic forecasts. The survey collects data from tax offices for husbands and wives separately and for each source of income. The tax liability on the wife's income under the current arrangements was calculated as the difference between the tax liability on the couple's total income and the liability on the husband's income only. It was assumed that all reliefs claimed were used against the husband's income.