§ Sir Ralph HowellTo ask the Chancellor of the Exchequer what would be the estimated increase in direct taxes, national insurance contributions and indirect taxes if all those currently unemployed were employed and in receipt of(a) £120 per week gross of tax and national insurance contributions, (b) £140 per week gross and (c) £160 per week gross. [36305]
§ Mr. JackI regret that it has not been possible to provide a substantive answer before the summer recess. I shall write to my hon. Friend shortly and place a copy of the letter in the Library.
§ Mr. PawseyTo ask the Chancellor of the Exchequer what studies his Department has(a) commissioned and (b) evaluated into the correlation between increases in tax 1260W rates and falls in tax yields; and if he will make a statement. [32944]
§ Mr. JackThere are a large number of studies looking at the link between marginal tax rates, incentives and yields. We keep developments in the field under constant review. This Government's policy is to cut marginal tax rates, when it is prudent to do so, to encourage enterprise and reward innovation. The share of total income tax paid by the highest 10 per cent. of tax payers has risen from 35 per cent. in 1978–79 to 44 per cent. this year.
§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate for the 1995–96 fiscal year of the revenue raised from income tax in respect of(a) the 20 per cent. rate, (b) the 25 per cent. rate and (c) the 40 per cent. rate. [35356]
§ Mr. Jack[holding answer 18 July 1995]: It is estimated that in 1995–96 total tax liability before allowing for the married couple's allowance and mortgage interest relief at source will be about £14.8 billion at the 20 per cent. rate, £56.3 billion at the 25 per cent. rate and £6.5 billion at the 40 per cent rate.
§ Mr. BruceTo ask the Chancellor of the Exchequer what are his estimate of the number of taxpayers with a total taxable income in the fiscal year 1995–96 to include salaries, dividends, interest receivable and pensions, within each band of £1,000 up to £60,000, then £5,000 up to £100,000, then £25,000 up to £200,000, then £50,000, up to £500,000, then £100,000 up to £1 million, and above £1 million. [35516]
§ Mr. Jack[holding answer 18 July 1995]: It is to provide reliable estimates in the detail requested. Provisional estimates for 1995–96 of the number of taxpayers analysed by total income for income tax purposes is given in the table.
Range of total income1 (lower limit) £ Number of taxpayers in 1995–96 thousands 3,525 1,800 5,000 4,100 7,500 3,800 10,000 6,100 15,000 4,100 20,000 3,700 30,000 1,500 50,000 430 100,000 120 Total 25,700