§ Mrs. Anne CampbellTo ask the Chancellor of the Exchequer what would have been the average percentage loss of income due to an increase of 7p in the pound in income tax, instead of the measures imposed in the March and November 1993 budgets, for the 10 per cent. lowest income group and the 10 per cent. highest income group.
§ Mr. DorrellThe distribution of income tax can be analysed using the annual survey of personal incomes which records information about individuals who have some tax liability. On the basis of a projection to 1994–95 of the 1991–92 survey the income net of income tax of the top 10 per cent. of taxpayers would fall by about 4.1 per 631W cent. as a result of a 7p increase in the basic rate of income tax. The bottom 10 per cent. of taxpayers pay tax only at the lower rate and would be unaffected by a change in the basic rate.