§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer what proportion of its income an average family paid in direct and indirect taxes from 1970–71 to date; what estimate he has made of the proportion from 2000–01 to 2001 05; and on what assumptions these figures are based. [104278]
§ Dawn PrimaroloThe available data are as follows:
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Percentage of income paid in direct taxes by an average family Year Percentage 1970–71 18.8 1971–72 17.7 1972–73 17.5 1973–74 19.6
Percentage of income paid in direct taxes by an average family Year Percentage 1974–75 22.2 1975–76 25.7 1976–77 24.6 1977–78 22.5 1978–79 20.9 1979–80 18.9 1980–81 20.8 1981–82 22.5 1982–83 22.8 1983–84 22.4 1984–85 22.0 1985–86 22.0 1986–87 21.9 1987–88 21.4 1988–89 20.7 1989–90 20.8 1990–91 20.8 1991–92 20.7 1992–93 20.2 1993–94 20.3 1994–95 21.7 1995–96 22.4 1996–97 21.5 1997–98 20.9 1998–99 21.0 1999–2000 20.4 2000–01 20.5 2001–02 18.9 Direct taxes are defined as Income Tax plus National Insurance minus Child Benefit. In line with long-standing convention, Child Benefit is treated as a negative component of income tax, making it consistent with child tax allowances prior to 1976. In order to provide data back to 1970 figures provided are for a one earner married couple on male mean earnings with two children.
No estimates of the tax burden at the detailed household level are available beyond 2001–02.
Estimating the impact of indirect taxes is imprecise as spending patterns vary widely between households with the same composition and income. The level of council tax payments will also vary depending on where families live.