Income Tax (Hansard, 28 January 1991)

§ Mr. Cohen
To ask the Chancellor of the Exchequer what rise in income tax would be required to raise £3.6 million per day.

§ Mr. Maude
A yield of £3.6 million per day would be equivalent to an annual yield of about £1,300 million. Raising the basic rate of income tax by 1 p would yield about £2 billion in a full year.

§ Mr. Redmond
To ask the Chancellor of the Exchequer by how much income tax would have to be raised to cover expenditure of £1,008 million per calendar month.

§ Mr. Maude
A yield of £1,008 million per calendar month would be equivalent to an annual yield of about £12,100 million. Raising the basic rate of income tax by 6p would yield about £12,500 million in a full year.

§ Mr. Bowis
To ask the Chancellor of the Exchequer what is his estimate for(a) the increase in revenue from income tax and (b) the increase in revenue from VAT, in the event of a 1p reduction in basic rate of income tax; and what is his estimate for the same tax revenues in the event of a 1p reduction in higher rate of income tax.

§ Mr. Maude
The direct effects of a 1p change in the basic rate of income tax and a 1p change in the higher rate of income tax are given in chapter 4 of the 1990 autumn statement (Cm 1311). Estimates of the wider effects of tax changes depend on the economic model used and on assumptions about other economic policies.