§ Mr. RookerTo ask the Chancellor of the Exchequer if he will publish, using 1989.90 price and income levels, the effect on take-home pay of the changes in income tax and national insurance contributions since 1979 for(a) a single person, (b) a married man, and (c) a married man with two children in each case with a £30,000 mortgage at gross earnings levels of (i) £12,000, (ii) £18,000, (iii) £24,000, (iv) £30,000, (v) £36,000 and (vi) £42,000.
§ Mr. Lilley[holding answer 26 March 1990]: The information is in the table which shows the additional liability to income tax and national insurance contributions in 1989–90 if the 1978–79 regimes had been indexed for inflation and applied to the individuals specified.
Increase in 1989–90 in income tax and national insurance contributions under 1978–79 indexed regimes Earnings Single person Married man £ per annum £ per annum £ per annum 12,000 289.22 267.62 18,000 477.72 456.12 24,000 957.72 936.12 30,000 1,585.32 1,637.07 36,000 2,395.82 2,315.57 42,000 3,738.57 3,549.07 Note
Calculations assume no other source of income; no reliefs or allowances other than relief on interest at 13.9 per cent. on a £30,000 mortgage and the appropriate personal allowance; and the post-October 1989 NIC rates. Child tax allowances in 1978–79 excluded from the calculations as they were being phased out.
§ Mr. RookerTo ask the Chancellor of the Exchequer if he will construct an index with 1978–79 equalling 100 of the changes in the level of the income tax and national insurance contributions for each subsequent year for a taxpayer on(a) half, (b) two thirds, (c) average, (d) five times average and 10 times average earnings for households where the taxpayer is (i) single, (ii) married and (iii) married with two children, in each case assuming the wife does not work.
§ Mr. Lilley[holding answer 26 March 1990]: Figures for income tax and national insurance contributions for 1978–79 to 1987–88 have been placed in the Library of the House, as noted in the Official Report, 13 April 1989, col. 620. Figures for 1988–89 and 1989–90 were given in reply to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 8 January 1990, Official Report, columns 559–64.
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§ Mr. RookerTo ask the Chancellor of the Exchequer if he will publish, using 1989–90 price and income levels, the effect on take-home pay of the changes in income tax and national insurance contributions since 1979 for(a) a single person, (b) a married man and (c) a married man with two children earning £6,000 per annum with no mortgage.
§ Mr. Lilley[holding answer 26 March 1990]: If the 1978–79 income tax and national insurance regimes had been indexed for inflation and applied in 1989–90 to people earning £6,000 per annum, a single person would pay £292.82 more and a married man would pay £271.22 more. As child tax allowances were being phased out in 1978–79, they have been excluded from the comparison. The calculations assume no other forms of income and no reliefs or allowances other than the personal allowance (single or married, as appropriate), and the post-October 1989 rates of national insurance.
§ Mr. RookerTo ask the Chancellor of the Exchequer what is the estimated yield from all sources of taxation including excise duties for 1990–91; what the comparable yield in 1978–79 was revalued at 1990–91 levels; and if he will provide a breakdown of categories used.
Mr. Lilly[holding answer 26 March 1990]: Total taxes on income, capital and expenditure and the community charge are forecast to yield £170.2 billion in 1990–91. The comparable figure for 1978–79 is £120.1 billion at 1990–91 prices.