§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) of 1 March 1994,Official Report, column 665, on income tax.[33904]
§ Mr. JackThe change in tax by quantile group for 1995–96 compared with a 1978–79 indexed regime is in the tables. In table A, the comparison is hypothetical since, if an indexed version of the 1978–79 tax regime had prevailed over the past 15 years, the income base would not have grown as it has.
Table A: Calculations using the 1995–96 income base Quantitle group of taxpayers under the 1978–79 indexed regime Number of taxpayers Reduction in tax Average reduction Per cent. Thousands £ million £ Top 1 300 9,700 38,000 Top 5 1,300 13,500 10,500 Top 10 2,600 15,800 6,100 Bottom 50 12,900 4,500 350 All taxpayers 25,700 30,700 1,200 In contrast to these hypothetical figures, table B shows how the share of income tax actually paid by high income groups has risen since 1979, while the share of the income tax burden borne by low income tax payers has fallen.
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Table B: Calculations using the income base for each year Percentage Share of income tax in Quantile group of taxpayers 1978–79 1995–96 Top 1 11 16 Top 5 24 33 Top 10 35 44 Bottom 50 18 13 All taxpayers 100 100