Income Tax (Hansard, 28 October 1993)

§ Mr. David Nicholson
To ask the Chancellor of the Exchequer if he will list the rates of income tax over 25 per cent., and the bands of income, in local currency terms, to which they apply, for France, Germany, the Netherlands, Italy, the United States of America, Canada, Australia and Japan.

§ Mr. Dorrell
The information requested is as follows.

France

Rate per cent. Band of taxable income (francs)

28.8 60,690—73,450

33.6 73,450—84,740

38.4 84,740—141,190

43.2 141,190—194,190

49 194,190—229,710

53.9 229,710—261,290

56.8 over 261,290

Note:
The above bands of income apply to a single person; they are increased according to the taxpayer's family circumstances, e.g., x 2 for a married person with no children, and x 3 for a married taxpayer with two children.
Germany The German tax rates rise gradually from 19 per cent. to 53 per cent. The effective rate rises above 25 per cent. when taxable income reaches 28,349 DM (single taxpayer) and the top rate of 53 per cent. takes effect when income is over 120,041 DM. These two amounts are doubled for a married couple taxed jointly.

Netherlands

Rate Per cent. Band of taxable income (guilders)

50 43,267–86,534

60 over 86,534

Italy

Rate Per cent. Band of taxable income (lire)

27 14,400,000–30,000,000

34 30,000,000–60,000,000

41 60,000,000–150,000,000

46 150,000,000–300,000,000

51 over 300,000,000

750W

USA

Rate Band of taxable income (dollars)

Per cent. Single taxpayer Married couple

28 22,101–53,500 36,901–89,150

31 53,501–115,000 89,151–140,000

36 115,001–250,000 140,001–250,000

39.6 over 250,000 over 250,000

Note:
The above federal rates only. Most states also levy income tax at varying rates.

Canada

Rate Per cent. Band of taxable income (dollars)

26 29,591–59,180

29 over 59,180

Notes:
1. The above rates are increased by federal surcharges (maximum: 5 per cent. of tax due);
2. All provinces levy income tax, usually as a percentage of federal tax due. For example, the rate in Ontario is 58 per cent., which effectively increases the 26 per cent. and 29 per cent. rates above to 41 per cent. and 45.8 per cent.

Australia

Rate Per cent. Band of taxable income (dollars)

38 9,543–16,438

46 16,439–22,831

47 over 22,831

Japan

Rate Per cent. Band of taxable income (yen)

30 6,000,000–10,000,000

40 10,000,000–20,000,000

50 over 20,000,000

Notes: Local income taxes (maximum: 15 per cent. are also payable.

§ Mr. Mandelson
To ask the Chancellor of the Exchequer how much tax was remitted or written off as irrecoverable in 1992; and how much of this was PAYE contributions.

§ Mr. Dorrell
The amount of tax remitted or written off as irrecoverable in 1992 was:

£000s

Year ended 31 October 1992 1,694,246

The amount of PAYE contributions remitted or written off as irrecoverable in 1992 was:

£000s

Year ended 31 October 1992 381,172

§ Mr. Morgan
To ask the Chancellor of the Exchequer what proportion of the total sum raised from personal taxation has been paid by the top(a) 1 per cent., (b) 5 per cent. and (c) 10 per cent. of taxpayers in each year since 1979.

§ Mr. Dorrell
The latest estimates are given in the tables. Estimates of income tax liability are based on 751W information reported to tax offices and collected through annual surveys of personal incomes. For years before 1985–86, estimates exclude some investment income on which tax is deducted at source. For years up to and including 1989–90, married couples are counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation, for 1990–91 onwards, husbands and wives are counted separately. Estimates are based on the surveys of personal incomes for years up to 1991–92 and projections of the 1991–92 survey for subsequent years; the latter are therefore provisional.

Percentage of income tax liabilities

Year Top 1 per cent, of taxpayers¹ Top 5 per cent, of taxpayers¹ Top 10 per cent, of taxpayers¹

1978–79 11 24 34

1983–84 11 26 36

1984–85 12 26 38

1985–86 13 27 38

1986–87 14 29 39

1987–88 15 30 41

1988–89 15 31 42

1989–90 15 31 42

1990–91 15 31 42

1991–92 16 33 43

1992–93² 17 34 45

1993–94² 17 34 45

¹ Married couples and single people for years prior to 1990–91.

² Provisional.

France
Rate per cent.	Band of taxable income (francs)
28.8	60,690—73,450
33.6	73,450—84,740
38.4	84,740—141,190
43.2	141,190—194,190
49	194,190—229,710
53.9	229,710—261,290
56.8	over 261,290

Netherlands
Rate Per cent.	Band of taxable income (guilders)
50	43,267–86,534
60	over 86,534

Italy
Rate Per cent.	Band of taxable income (lire)
27	14,400,000–30,000,000
34	30,000,000–60,000,000
41	60,000,000–150,000,000
46	150,000,000–300,000,000
51	over 300,000,000

USA
Rate	Band of taxable income (dollars)
Per cent.	Single taxpayer	Married couple
28	22,101–53,500	36,901–89,150
31	53,501–115,000	89,151–140,000
36	115,001–250,000	140,001–250,000
39.6	over 250,000	over 250,000

Canada
Rate Per cent.	Band of taxable income (dollars)
26	29,591–59,180
29	over 59,180

Australia
Rate Per cent.	Band of taxable income (dollars)
38	9,543–16,438
46	16,439–22,831
47	over 22,831

Japan
Rate Per cent.	Band of taxable income (yen)
30	6,000,000–10,000,000
40	10,000,000–20,000,000
50	over 20,000,000

Percentage of income tax liabilities
Year	Top 1 per cent, of taxpayers¹	Top 5 per cent, of taxpayers¹	Top 10 per cent, of taxpayers¹
1978–79	11	24	34
1983–84	11	26	36
1984–85	12	26	38
1985–86	13	27	38
1986–87	14	29	39
1987–88	15	30	41
1988–89	15	31	42
1989–90	15	31	42
1990–91	15	31	42
1991–92	16	33	43
1992–93²	17	34	45
1993–94²	17	34	45
¹ Married couples and single people for years prior to 1990–91.
² Provisional.