§ 12. Mr. Jim CunninghamTo ask the Chancellor of the Exchequer if he will make a statement about the effect recent tax increases will have on the average level of tax in the country.
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§ Mr. DorrellThe average impact across all households will be increases of £5.75 in 1994–95 and £8.75 in the two years to 1995–96.
§ 14. Ms EagleTo ask the Chancellor of the Exchequer if he will estimate how much poor families on 75 per cent. or less of average earnings are now paying in income tax and national insurance following the changes introduced at the beginning of this month; and what the figure was for 1978–79.
§ Mr. DorrellThe amount paid in tax and NICs will vary at different levels of income. The real take-home pay of a married man on three-quarters average earnings has increased by £61 per week since 1978–79.
§ 18. Mr. BayleyTo ask the Chancellor of the Exchequer what proportion of the increase in the tax burden for a married couple on typical earnings, and with two children, since 1978–79 is accounted for by increases and extensions in VAT.
§ Sir John CopeThe amount of VAT paid by particular types of families depends partly on the rate and coverage of VAT and partly on levels and patterns of spending. Reliable estimates of the contribution made by each of these factors are not available.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer (1) if he will estimate how much single persons on average male earnings are now paying in income tax and national insurance following the changes introduced at the beginning of this month; and what the figure was for 1978–79;
(2) if he will estimate the amount a typical couple with two children and one spouse working on average male earnings are now paying in income tax and national insurance following the changes introduced at the beginning of April; what he estimates this figure will be from April 1995; and what the figure was for 1978–79;
(3) if he will estimate the change in the direct tax burden a typical family will face in (a) 1994–95 and (b) 1995–96 on current policies;
(4) if he will estimate how much poor families on 75 per cent. or less of average earnings are now paying in income tax and national insurance following the changes introduced at the beginning of April; and what the figure was for 1978–79.
§ Mr. DorrellInformation for 1994–95 was given in the reply to the hon. Member for Peckham (Ms Harman) on 19 January 1994, and for 1978–79 in the tables placed in the House of Commons Library as noted in the answer to the hon. Member for Edinburgh, South (Mr. Griffiths) on 13 April 1989,Official Report, column 624. The effect of the Budget changes in 1995–96 will depend on changes in earnings and prices.