§ 128. Mr. AllenTo ask the Chancellor of the Exchequer if he will publish a table showing information available to him on the tax allowances and tax reliefs given to single people and one and two-earner married couples in(a) Germany, (b) Italy, (c) France, (d) United States of America and (e) Holland with those in the United Kingdom together with the income band at each income tax rate chargeable.
§ Mr. LilleyAvailable information is given in the tables, which are supplemented by notes. All amounts have been converted to sterling using the latest available purchasing power parities.
617W
Tax allowances Year of income Single £ One-earner married couple £ Two-earner married couple £ Germany 1990 1,421 2,841 2,841 Italy 1989 Nil 1,930 1,930 France 1989 1,425 2,850 2,850 United States of America 1989 3,072 5,543 5,543 Netherlands 1990 1,162 2,324 2,324 United Kingdom 1989–90 2,785 4,375 7,160 Notes:
- 1. In Germany and France there are no personal allowances as such, but the tax tables incorporate a zero rate band. The figures given are the maximum amounts of income subject to tax on which no tax is due.
- 2. In Germany there is also an employment deduction of £496.
- 3. In Italy there are no personal allowances as such, but a married man may deduct £193 from tax due and therefore is not a net taxpayer unless income exceeds £1,930. In addition, employees receive an earned income credit of £215 on tax due. Thus, married employees are not net taxpayers unless their income exceeds £3,312, and single employees are not net taxpayers unless their income exceeds £2,150.
- 4. In France employees may also deduct 20 per cent. of earned income and 10 per cent. for employment-related expenses.
- 5. The Netherlands has a 4 per cent. employment income deduction (minimum £52, maximum £258).
Income band at each income tax rate chargeable Year of income Taxable income bracket £ Rate per cent Germany 1990 see Note 1 Italy 1990 0– 2,671 10.0 2,671– 5,300 22.0 5,300– 13,272 26.0 13,272– 26,586 33.0 26,586– 66,402 40.0 66,402– 132,846 45.0 over 132,846 50.0 France 1989 0– 2,850 0.0 2,850– 2,980 5.0 2,980– 3,531 9.6 3,531– 5,582 14.4 5,582– 7,176 19.2 7,176– 9,009 24.0 9,009– 10,903 28.8 10,903– 12,579 33.6 12,579– 20,959 38.4 20,959– 28,826 43.2 28,826– 34,097 49.0 34,097– 38,787 53.9 over 38,787 56.8 United States of America (single) 1989 0– 11,175 15.0 11,175– 27,048 28.0 27,048– 56,084 33.0 over 56,084 28.0 (married, joint returns) 1989 0– 18,645 15.0 18,645– 45,090 28.0 45,090– 93,566 33.0 over 93,566 28.0 (married, separate returns) 0– 9,322 15.0 9,322– 22,545 28.0 22,545– 71,021 33.0 over 71,021 28.0 Netherlands 1990 0– 10,718 35.1 10,718– 21,436 50.0 over 21,436 60.0 United Kingdom 1989–90 0—20,700 25.0 over 20,700 40.0 Notes:
- 1. In Germany tax rates rise gradually from 19 per cent. to a top rate of 53 per cent. The top rate is reached at a taxable income of £29,787 (single) and £59,574 (married couple, joint return).
- 2. The income given for France are halved in the case of a single person.