§ Mr. SedgemoreTo ask the Chancellor of the Exchequer (1) what proportion of taxpayers pay a smaller percentage of their earnings in direct and indirect taxes in 1991–92 than in 1978–79:
552W(2) what proportion of taxpayers pay a smaller percentage of their earnings in income tax and national insurance contributions in 1991–92 than in 1978–79.
§ Mr. MaudeThere are no data available which match up the tax payments of particular taxpayers in 1991–92 with payments by the same taxpayers in 1978–79.
§ Mr. SedgemoreTo ask the Chancellor of the Exchequer what percentage of earnings was paid in income tax and national insurance contributions, less child benefit where appropriate, by a single person, and by a married couple with two children, on an income of up to half average male earnings, between half and average male earnings, and above average male earnings, in 1978–79; what is the comparable information for 1991–92; and how many taxpayers, in total, were within each of those three earning groups in each case.
§ Mr. MaudeFigures for a single person, and a married man with two children, on an income of half, average, and one-and-a-half times average male earnings are set out in the table. These figures are calculated on the assumption that the households receive no tax reliefs other than the standard allowances; have income only from employment; and pay class 1 national insurance contributions at the contracted-in rate. For other taxpayers, tax payments will vary according to the level and sources of their income, their family circumstances, their entitlement to other tax reliefs and so on.
Liability to tax depends on total income rather than on earnings; taxpayers may or may not be earners, and earners may or may not be taxpayers. Information on the number of earners in different earnings groups may be found in the New Earnings Survey.
Percentage of earnings paid in income tax and NICs Multiples of average 1/2 1 11/2 1978–79 Single 23.6 31.5 33.3 Married man with two children1 2.5 20.9 26.2 1991–92 Single 22.3 28.2 28.1 Married man with two children1 7.7 20.8 23.2 1 Including child tax allowances and less child benefit.
§ Mr. SedgemoreTo ask the Chancellor of the Exchequer what percentage of earnings was paid in direct and indirect taxation by a single person, and a married couple with two children, on an income of up to half average male earnings, between half and average male earnings, and above average male earnings, in 1978–79; and if he will give the comparable figure for 1991–92.
§ Mr. MaudeFigures for a single person, and a married couple with two children, on average male earnings are set out in the table. These figures are calculated on the assumption that the households receive no tax reliefs other than the standard allowances; have income only from employment; and pay class 1 national insurance contributions at the contracted-in rate.
The estimates of indirect taxes are based on equations derived from the Family Expenditure Survey, making the illustrative assumption that 10 per cent. of disposable income is saved. Reliable estimates cannot be made outside the range of three quarters to one-and-a-half times average male earnings.
553WFor other taxpayers, tax payments will vary according to the level and sources of their income, their family circumstances, their entitlement to other tax reliefs, the level and pattern of their expenditure and so on.
Table: Percentage of earnings paid in direct and indirect taxes1At average male earnings 1978–79 1992–93 Single 42.5 40.6 One earner married couple with two children 32.2 33.4 1 Excluding local taxes.