§ Sir David KnoxTo ask the Chancellor of the Exchequer if he will publish figures for each of a single person, a single-wage married couple and a single-wage couple with two children, showing the percentages of earnings taken in(a) income tax, (b) national insurance contribution, (c) VAT, (d) local authority rates/community charge and (e) other indirect taxation, at 75 per cent., 100 per cent. and 150 per cent. of average male manual earnings, in 1979–80, 1989–90 and the latest year for which such figures are available.
§ Mr. DorrellThe information available is given in the tables.
Percentage of gross earnings paid in direct taxes in 1979–80 Multiples of average male manual earnings ¾ 1 1½ Single Income tax 20.2 22.6 25.1 NICs 6.5 6.5 5.8 Married, no children income tax 15.2 18.9 22.6 NICs 6.5 6.5 5.8 Married, two children Income tax 4.7 11.0 17.3 NICs 6.5 6.5 5.8 637W
Percentage of gross earnings paid in direct taxes in 1989–90 Multiples of average male manual earnings ¾ 1 1½ Single Income tax 17.1 19.1 21.0 NICs 8.1 8.3 8.2
Multiples of average male manual earnings ¾ 1 1½ Married, no children Income tax 12.6 15.7 18.8 NICs 8.1 8.3 8.2 Married, two children Income tax 4.0 9.2 14.5 NICs 8.1 8.3 8.2
Percentage of gross earnings paid in direct taxes in 1993–94 Multiples of average male manual earnings ¾ 1 1½ Single Income tax 16.0 18.3 20.5 NICs 7.1 7.6 8.0 Married, no children Income tax 12.1 15.3 18.6 NICs 7.1 7.6 8.0 Married, two children Income tax 3.5 8.9 14.3 NICs 7.1 7.6 8.0 Notes to tables.
1Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, are assumed to pay class 1 NI contributions at the contracted-in-rate.
2 In order to provide comparability with 178–79, when support for children was given partly through child tax allowance, child benefit is treated as a negative income tax for the married couple with two children.
3. Average male manual earnings are taken to be the average gross weekly earnings of all full-time manual males on adult rates with pay unaffected by absence. Average male manual earnings stood at £101.10 in 1979–80 and £225.60 in 1989–90. They are assumed, on the basis of an illustrative assumption of 3.5 per cent growth in 1993–94, to be £281.50 in 1993–94.
§ Ms CorstonTo ask the Chancellor of the Exchequer what is his estimate of the cost to the Treasury in(a) 1994–95, (b) 1995–96 and (c) 1996–97 of tax expenditures and structural reliefs; and what specific changes in this cost will be brought about by the changes announced in his last Budget.
§ Mr. DorrellThe latest estimate of the cost of tax expenditures and structural reliefs, which are for 1993–94, were published in a Treasury booklet "Tax Ready Reckoner and Tax Reliefs" in July 1993. A copy of this was placed in the Library. Preliminary estimates for 1994–95 will be published later this year.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what assessment he has made of the impact of the Government's tax policies on the economic well-being of people on low incomes and below the pension age.
§ Mr. DorrellI refer the hon. Member to the reply that I gave him on 3 March at column880.