§ Mr. Howard:To ask the Chancellor of the Exchequer (1) what he estimates the effect on current receipts would have been in (a)2003–04, (b)2004–05, (c)2005–06, (d)2006–07 and (e)2007–08 if the income tax system had been changed such that (i) the basic rate limit for 2003–04 had been set at £45,385, increasing thereafter in accordance with the normal indexation procedure, (ii)the higher rate of income tax applicable to taxable income above a basic rate limit of £45,385 in 2003–04 and an indexed level thereafter had been set at 50 per cent. in 2003–04 and all subsequent years and a (iii)60 per cent. marginal rate of income tax had been applied to annual income above £100,000 in 2003–04, with this threshold being indexed in accordance with the normal procedure thereafter; and if he will set out the assumptions concerning changes to economic behaviour, including (A) hours worked by people in different income brackets, (B) changes in consumption levels and (C) decisions on country location taken by companies and individuals that inform this calculation; [123358]
(2) if he will estimate the effect of introducing a 60 per cent. marginal rate of income tax on annual income above £100,000 on (a)GDP and (b)current receipts after (i) one year, (ii) five years and (iii) 10 years; and if he will set out the assumptions on which the calculation is based. [123359]
§ Dawn Primarolo[holding answer 3 July 2003]:We have compiled comprehensive information on income tax which has been placed in the Library of the House.