§ Mr. GibbTo ask the Chancellor of the Exchequer if he will publish the amounts (i) in current prices, (ii) in constant 1999–2000 prices and (iii) as percentages of personal income, taken by(a) income taxes, (b) national insurance contributions, (c) value-added tax, (d) other central Government indirect taxes, (e) the aggregate of (a) to (d), (f) average council tax payments and (g) the aggregate of (a) to (d) and (f) for (1) a single person,(2) a married couple without children, both working and (3) a married couple with two children, husband in work, wife not working, in each case at 50, 75, 100, 150 and 200 per cent. of average earnings for the financial year 1999–2000, taking account of changes announced in his Budget Statement and previously announced changes and for each of the years (w) 1996–97, (x) 1997–98, (y) 1998–99 and (z) 1999–2000. [116508]
§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer what average level of income he estimates a single-earner couple will receive(a) gross and (b) net in 265W (i) 2000–01 and (ii) 2001–02; if he will set out the method used in making this calculation; and if he will make a statement. [118850]
§ Mr. PortilloTo ask the Chancellor of the Exchequer what taxes he includes in his calculation of the tax burden on the average family. [121009]
§ Dawn Primarolo[holding answer 14 April and 5 May 2000]: The available information, which shows income tax (including child benefit and working families tax credit from its first full year of implementation) and national insurance contributions, at multiples of median full-time earnings of all employees is given in the table. The figures are shown in (a) current prices and (b) as percentages of income, for (i) the years 1996–97 to 2001–02 where the figures take account of all changes announced in Budgets to date. 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.
The figures use median all-employee earnings. However, the data are available only since 1983. Looking over a longer time period, using male mean earnings, the series shows that as a result of personal tax and benefit measures in the last three Budgets the tax burden on a family with two children on 100 per cent. of average earnings will fall by 2001 to the lowest level since 1972.
266W
Percentage 50 75 100 150 200 Single: 1996–97 £per week Gross Income 153.98 230.97 307.96 461.94 615.92 Income Tax 16.58 35.06 53.53 90.49 135.94 NICs 10.52 18.22 25.92 40.62 40.62 Percentage of gross earnings Income Tax 10.8 15.2 17.4 19.6 22.1 NICs 6.8 7.9 8.4 8.8 6.6 Tax + NICs 17.6 23.1 25.8 28.4 28.7 1997–98 £per week Gross Income 160.37 240.55 320.73 481.10 641.46 Income Tax 16.63 35.07 53.51 90.40 137.78 NICs 11.08 19.09 27.11 41.54 41.54 Percentage of gross earnings Income Tax 10.4 14.6 16.7 18.8 21.5 NICs 6.9 7.9 8.5 8.6 6.5 Tax + NICs 17.3 22.5 25.1 27.4 28.0 1998–99 £per week Gross Income 166.35 249.53 332.70 499.05 665.40 Income Tax 17.22 36.36 55.49 93.75 142.81 NICs 11.52 19.83 28.15 43.38 43.38 Percentage of gross earnings Income Tax 10.4 14.6 16.7 18.8 21.5 NICs 6.9 7.9 8.5 8.7 6.5 Tax + NICs 17.3 22.5 25.1 27.5 28.0 1999–2000 £per week Gross Income 174.83 262.25 349.67 524.50 699.34 Income Tax 17.29 37.39 57.50 97.71 151.10 NICs 10.88 19.63 28.37 43.40 43.40
267W
Percentage 50 75 100 150 200 Percentage of gross earnings Income Tax 9.9 14.3 16.4 18.6 21.6 NICs 6.2 7.5 8.1 8.3 6.2 Tax + NICs 16.1 21.7 24.6 26.9 27.8 2000–01 £ per week Gross Income 182.88 274.31 365.75 548.63 731.50 Income Tax 18.17 38.29 58.41 98.64 157.06 NICs 10.69 19.83 28.98 45.90 45.90 Percentage of gross earnings Income Tax 9.9 14.0 16.0 18.0 21.5 NICs 5.8 7.2 7.9 8.4 6.3 Tax + NICs 15.8 21.2 23.9 26.3 27.7 2001–02 £ per week Gross Income 191.11 286.66 382.21 573.32 764.42 Income Tax 19.21 40.23 61.25 103.30 165.47 NICs 10.41 19.97 29.52 48.63 48.80 Percentage of gross earnings Income Tax 10.1 14.0 16.0 18.0 21.6 NICs 5.4 7.0 7.7 8.5 6.4 Tax + NICs 15.5 21.0 23.7 26.5 28.0 Married with two Children: 1996–97 £ per week Gross Income 153.98 230.97 307.96 461.94 615.92 Income Tax 11.41 29.89 48.37 85.33 130.78 NICs 10.52 18.22 25.92 40.62 40.62 CB 19.60 19.60 19.60 19.60 19.60 Percentage of gross earnings Net income tax 7.4 12.9 15.7 18.5 21.2 NICs 6.8 7.9 8.4 8.8 6.6 Net tax + NICs—CB 1.5 12.3 17.8 23.0 24.6 1997–98 £ per week Gross Income 160.37 240.55 320.73 481.10 641.46 Income Tax 11.35 29.79 48.23 85.12 132.50 NICs 11.08 19.09 27.11 41.54 41.54 CB 20.05 20.05 20.05 20.05 20.05 Percentage of gross earnings Net income tax 7.1 12.4 15.0 17.7 20.7 NICs 6.9 7.9 8.5 8.6 6.5 Net tax + NICs—CB 1.5 12.0 17.2 22.2 24.0 1998–99 £ per week Gross Income 166.35 249.53 332.70 499.05 665.40 Income Tax 11.74 30.87 50.00 88.27 137.33 NICs 11.52 19.83 28.15 43.38 43.38 CB 20.75 20.75 20.75 20.75 20.75 Percentage of gross earnings Net income tax 7.1 12.4 15.0 17.7 20.6 NICs 6.9 7.9 8.5 8.7 6.5 Net tax + NICs—CB 1.5 12.0 17.3 22.2 24.0 1999–2000 £ per week Gross Income 174.83 262.25 349.67 524.50 699.34 Income Tax 13.50 33.61 53.71 93.92 147.31 NICs 10.88 19.63 28.37 43.40 43.40 CB 24.00 24.00 24.00 24.00 24.00
268W
Percentage 50 75 100 150 200 Percentage of gross earnings Net income tax 7.7 12.8 15.4 17.9 21.1 NICs 6.2 7.5 8.1 8.3 6.2 Net tax + NICs—CB 0.2 11.1 16.6 21.6 23.8 2000–01 £ per week Gross Income 182.88 274.31 365.75 548.63 731.50 Income Tax 18.17 38.29 58.41 98.64 157.06 NICs 10.69 19.83 28.98 45.90 45.90 CB 25.00 25.00 25.00 25.00 25.00 WFTC 81.19 46.99 12.79 — — Percentage of gross earnings Net income tax -34.5 -3.2 12.5 18.0 21.5 NICs 5.8 7.2 7.9 8.4 6.3 Net tax + NICs—CB -42.3 -5.1 13.6 21.8 24.3 2001–02 £ per week Gross Income 191.11 286.66 382.21 573.32 764.42 Income Tax 10.71 31.73 52.75 94.80 164.42 NICs 10.41 19.97 29.52 48.63 48.80 CB 25.85 25.85 25.85 25.85 25.85 WFTC 74.90 39.16 3.43 0.00 0.00 Percentage of gross earnings Net income tax -33.6 -2.6 12.9 16.5 21.5 NICs 5.4 7.0 7.7 8.5 6.4 Net tax + NICs—CB -41.7 -4.6 13.9 20.5 24.5 Married two earners (0 Children): 1996–97 £ per week Gross Income 153.98 230.97 307.96 461.94 615.92 Income Tax 0.00 12.07 28.96 64.95 101.90 NICs 5.64 13.34 21.04 36.43 51.83 Percentage of gross earnings Income Tax 0.0 5.2 9.4 14.1 16.5 NICs 3.7 5.8 6.8 7.9 8.4 Tax + NICs 3.7 11.0 16.2 21.9 25.0 1997–98 £ per week Gross Income 160.37 240.55 320.73 481.10 641.46 Income Tax 0.00 11.72 28.83 64.86 101.74 NICs 6.12 14.13 22.15 38.19 54.23 Percentage of gross earnings Income Tax 0.0 4.9 9.0 13.5 15.9 NICs 3.8 5.9 6.9 7.9 8.5 Tax + NICs 3.8 10.7 15.9 21.4 24.3 1998–99 £ per week Gross Income 166.35 249.53 332.70 499.05 665.40 Income Tax 0.00 12.16 29.88 67.23 105.49 NICs 6.40 14.71 23.03 39.67 56.30 Percentage of gross earnings Income Tax 0.0 4.9 9.0 13.5 15.9 NICs 3.8 5.9 6.9 7.9 8.5 Tax + NICs 3.8 10.8 15.9 21.4 24.3 1999–2000 £ per week Gross Income 174.83 262.25 349.67 524.50 699.34 Income Tax 0.00 11.63 30.79 71.00 111.21 NICs 4.28 13.03 21.77 39.25 56.73
Percentage 50 75 100 150 200 Percentage of gross earnings Income Tax 0.0 4.4 8.8 13.5 15.9 NICs 2.4 5.0 6.2 7.5 8.1 Tax + NICs 2.4 9.4 15.0 21.0 24.0 2000–01 £ per week Gross Income 182.88 274.31 365.75 548.63 731.50 Income Tax 2.54 16.69 36.35 76.58 116.81 NICs 3.37 12.23 21.38 39.66 57.95 Percentage of gross earnings Income Tax 1.4 6.1 9.9 14.0 16.0 NICs 1.8 4.5 5.8 7.2 7.9 Tax + NICs 3.2 10.5 15.8 21.2 23.9 2001–02 £ per week Gross Income 191.11 286.66 382.21 573.32 764.42 Income Tax 2.75 17.75 38.42 80.46 122.51 NICs 2.77 11.27 20.82 39.93 59.04 Percentage of gross earnings Income Tax 1.4 6.2 10.1 14.0 16.0 NICs 1.4 3.9 5.4 7.0 7.7 Tax + NICs 2.9 10.1 15.5 21.0 23.7 Notes:
1. Income tax payments are calculated on the basis that the household receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay Class 1 national national insurance contributions at the contracted-in rate.
2. Earnings are taken to be the median gross weekly earnings of all full-time employees on adult rates with pay unaffected by absence. (Median earnings are more representative of the population as a whole than mean male full-time earnings.)
3. A family with two children is assumed to have both children aged under 11.
4. In line with the convention in the Tax Benefit Reference Manual, Child Benefit is treated as negative income tax.
5. Working Families Tax Credit is included from its first full year of implementation in 2000–01
6. For the two earner family it is assumed earnings are split 60 per cent.:40 per cent.