§ Mr. Nigel GriffithsTo ask 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) a married man with a non-earning wife and two children and (b) a married man with an earning wife and two chilren at one half, one and a half, two, three, five and 10 times national average earnings in 1990–91; and what were the comparable figures in 1978–79.
§ Mr. LilleyThe information requested is set out in the table:
607W4. From 1990–91 husbands and wives in two-earner couples will be taxed independently. Previously the tax liability of two-earner couples depended on their joint income. To permit comparisons between 1978–79 and 1990–91 the table therefore shows income tax (less child benefit) and national insurance contributions paid by a married couple as a proportion of their joint income, assuming that the husband and wife share the relevant multiple of earnings in the ratio 60:40.
5. Estimates of VAT payments depend on a family's income and its pattern of expenditure. Such estimates are subject to a substantial margin of error and cannot reliably be made outside a range of 75 per cent. to 150 per cent. of average male earnings. Estimates for a single earner couple with two children are set out above. Corresponding figures for a two earner couple with two children are not available. Estimates are based on 1985 Family Expenditure Survey and assume that 10 per cent. of disposable income is saved.