HC Deb 18 February 1992 vol 204 cc82-3W
Mr. Allen

To ask the Chancellor of the Exchequer what is the average and marginal tax rate including income tax and statutory social insurance payments of a single person, a married couple, and a family consisting of a married couple plus two children earning in total(a) half, (b) three quarters, (c) average earnings, (d) 1.5 times, (e) twice, (f) three times, (g) five times and (h) 10 times average earnings, in each of the 12 EC member states.

Mr. Maude

Information for 1991–92 relating to the United Kingdom is given in the table.

Income tax and national insurance contributions at multiples of average earnings
Multiple of average earnings1 Amount of Tax and NIC2 £ per week Tax and NIC as percentage of gross earning Marginal tax and NIC rate
Single person
¼ 36.61 22.2 34
¾ 64.64 26.1 34
1 92.68 28.1 34
139.33 28.2 25
2 201.67 30.6 40
3 333.63 33.7 40
5 597.55 36.2 40
10 1,257.35 38.1 40
Married man (wife not earning)
¼ 28.34 17.2 34
¾ 56.38 22.8 34
1 84.41 25.6 34
131.06 26.5 25
2 188.44 32.4 40
3 320.40 32.4 40
5 584.32 35.4 40
10 1,244.12 37.7 40
1 Average earnings are taken to be the average gross weekly earnings of full-time males on adult rates with pay unaffected by absence. These are estimated to be £329.90 per week in 1991–92 using the Government Actuary's Department assumption of 7.75 per cent. growth in whole economy underlying earnings over 1990–91 as published in the 1991 Autumn Statement.
2 National insurance contributions are at the standard Class 1 rate for employees not contracted-out of the state additional (earnings related) pension scheme. The tax figures assume that no allowances or reliefs are available other than the standard allowances.

Similar information on the other EC member states is not readily available and could be provided only at disproportionate cost. Some of the information requested is, however, obtainable from "The Tax/Benefit Posi lion of Production Workers 1987–1990" published by the Organisation for Economic Co-operation and Development. A copy is available in the Library.

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