Income Tax (Hansard, 20 June 1997)

§ Mr. Prior
To ask the Chancellor of the Exchequer what is the top rate of income tax on earned income in(a) the United Kingdom, (b) Germany, (c) France, (d) the USA and (e) Japan; and at which income level it applies. [3527]

§ Dawn Primarolo
The information for tax regimes in force at the beginning of 1997 is given in the table. The income figures relate to earned income of single taxpayers and have been converted to pounds sterling using 1996 OECD purchasing power parities.
338W

Top rate of central government income tax Per cent Taxable income level above which top rate applies £

United Kingdom 40 29,265

Germany¹ 53 39,350

France² 54 29,330

USA³ 39.6 182,150

Japan⁴ 50 117,200

¹ Excluding solidarity surcharge (7.5 per cent. of tax) and church tax (9 per cent. tax). At incomes below the level shown rates rise gradually according to a complex formula.

² There are also 48 per cent. and 43 per cent. tax bands which start at £23,790 and £14,620 respectively.

³ States and local governments also impose income tax. OECD use a typical level of 7.25 per cent. Federal income tax at 36 per cent. starts at £83,760 and 31 per cent. tax at £40,150.

⁴ Local inhabitant taxes are also charged, at 15 per cent. on incomes over £26,650. Central government tax at 40 per cent. starts at £70,330 and 30 per cent. rates begins at £35,160.

§ Mr. Luff
To ask the Chancellor of the Exchequer how he intends to monitor the implementation of self-assessment of individuals' liability for income tax; and if he will make a statement. [3547]

§ Dawn Primarolo
The Inland Revenue has in place a number of management information systems to monitor the implementation of self assessment. As the Minister responsible for Self Assessment I also receive a monthly progress report.

	Top rate of central government income tax Per cent	Taxable income level above which top rate applies £
United Kingdom	40	29,265
Germany¹	53	39,350
France²	54	29,330
USA³	39.6	182,150
Japan⁴	50	117,200
¹ Excluding solidarity surcharge (7.5 per cent. of tax) and church tax (9 per cent. tax). At incomes below the level shown rates rise gradually according to a complex formula.
² There are also 48 per cent. and 43 per cent. tax bands which start at £23,790 and £14,620 respectively.
³ States and local governments also impose income tax. OECD use a typical level of 7.25 per cent. Federal income tax at 36 per cent. starts at £83,760 and 31 per cent. tax at £40,150.
⁴ Local inhabitant taxes are also charged, at 15 per cent. on incomes over £26,650. Central government tax at 40 per cent. starts at £70,330 and 30 per cent. rates begins at £35,160.