HC Deb 02 March 1993 vol 220 cc85-6W
Ms Harman

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 EC member state.

Mr. Dorrell

[holding answer 25 February 1993]: Information for 1992–93 relating to the United Kingdom is given in the table:

Income tax and national insurance contributions at multiples of average earnings Single person
Multiple of average earnings1 Amount of tax and NIC2£ per week Tax and NIC as percentage of gross earnings Marginal tax and NIC rate per cent.
1/2 36.55 21.1 34
3/4 65.96 25.4 34
1 95.37 27.6 34
11/2 143.93 27.7 25
2 212.68 30.7 40
3 351.08 33.8 40
5 627.88 36.3 40
10 1,319.88 38.1 40

Married man (wife not earning)
Multiple of average earnings1 Amount of tax and NIC2£ per week Tax and NIC as percentage of gross earnings Marginal tax and NIC rate per cent.
1/2 28.29 16.4 34
3/4 57.70 22.2 34
1 87.11 25.2 34
11/2 135.67 26.1 25
2 199.45 28.8 40
3 337.85 32.5 40
5 614.65 35.5 40
10 1,306.65 37.8 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 £34600 per week in 1992–93 using the Government Actuary's Department assumption of 5¼ per cent. growth in whole economy underlying earnings over 1991–92 as published in the 1992 Autumn Statement.
2 National Insurance Contributions are at the standard Class 1 rate for employees not contracted-out of the state additional (eanings 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 Position of Production Workers 1988–1991" published by the Organisation for Economic Co-operation and Development. A copy is available in the Library.