§ 18. Mr. HealdTo ask the Chancellor of the Exchequer what proportion of the total income tax take(a) is currently being contributed by top rate tax payers and (b) was contributed in 1979.
§ Mr. DorrellHigher rate taxpayers currently pay 40 per cent. of total income tax compared with 20 per cent. in 1978–79.
§ Mr. MandelsonTo ask the Chancellor of the Exchequer (1) if he will set out for each year between 1979–80 and 1988–89(a) the total income, both earned and unearned, (b) the total national insurance contributions and (c) the total income tax paid by (i) the top 1 per cent., (ii) the top 5 per cent., (iii) the top 10 per cent., (iv) the bottom 50 per cent. and (v) all taxpayers;
821W(2) if he will publish tables showing the change in income tax in each year between 1979–80 and 1988–89 as against the 1978–79 indexed regime, broken down into the top one per cent., five per cent., 10 per cent. and bottom 70 per cent. 50 per cent. and 30 per cent., and all taxpayers, giving the number of taxpayers in each category.
§ Mr. Dorrell[holding answer 27 January 1994]: This information cannot be provided since the relevant surveys of personal incomes do not include the necessary data on national insurance contributions and these analyses of income tax could be provided only at disproportionate cost.
§ Ms HarmanTo ask the Chancellor of the Exchequer how many additional income tax payers there will be in 194–95 as a result of his proposal to freeze the value of personal allowances.
§ Mr. Dorrell[holding answer 27 January 1994]: About 180,000 more people will pay tax in 1994–95 under the Budget proposals than if income tax allowances had been increased in line with statutory indexation. About 1.2 million more people would pay income tax in 1994–95 if all tax allowances had been increased in line with statutory indexation since 1978–79.
§ Ms. HarmanTo ask the Chancellor of the Exchequer how many more income tax payers will be paying tax at the margin of the higher rather than the basic rate in 1994–95
Increase (+)/decrease (-) in income tax and national insurance contributions for a single person and a married man (£ per week) Multiples of average earnings ½ ¾ 1 1½ 2 5 10 1994–95 Relative to 1993–94 tax system Single person Income tax -0.48 -0.48 -0.48 -0.48 -0.48 -0.48 -0.48 NICs 1.23 2.17 3.10 4.56 4.56 4.56 4.56 Married man Income tax 1.17 1.17 1.17 6.13 6.13 6.13 6.13 NICs 1.23 2.17 3.10 4.56 4.56 4.56 4.56 Relative to indexed 1993–94 tax system Single person Income tax -0.05 -0.05 -0.05 1.60 1.60 1.60 1.60 NICs 1.30 2.24 3.17 4.18 4.18 4.18 4.18 Married man Income tax 1.80 1.80 1.80 7.71 8.52 8.52 8.52 NICs 1.30 2.24 3.17 4.18 4.18 4.18 4.18 1993–94 Relative to 1992–93 tax system Single person Income tax -0.48 -0.48 -0.48 -0.48 -0.48 -0.48 -0.48 NICs -0.14 -0.14 -0.14 1.21 1.21 1.21 1.21 Married man Income tax -0.48 -0.48 -0.48 -0.48 -0.48 -0.48 -0.48 NICs -0.14 -0.14 -0.14 1.21 1.21 1.21 1.21 Relative to indexed 1992–93 tax system Single person Income tax 0.05 0.05 0.05 2.33 2.33 2.33 2.33 NICs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Married man Income tax 0.29 0.29 0.29 0.29 2.71 2.71 2.71 NICs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Note:
1. Average earnings are assumed to be £359.90 per week in 1993–94 and £374.30 per week in 1994–95. Taxpayers are assumed to have no reliefs other than the standard tax allowances, to have no sources of income other than earnings and to pay national insurance contributions at the contracted-in rate.
§ Mr. DewarTo ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Glasgow,
822W(a) as a result of his proposal to freeze the pesonal allowance and (b) in addition to those under (a), as a result of his proposal to freeze the higher rate threshold.
§ Mr. Dorrell[holding answer 27 January 1994]: Compared with statutory indexation of the personal allowance, about 20,000 more people will pay some tax at the higher rate in 1994–95. A further 100,000 more people will pay higher rate tax compared with statutory indexation of the basic rate limit.