Income Tax (International Comparisons)

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asked the Chancellor of the Exchequer (1) how much a married man with two children earning £2,500 a year gross pays in Income Tax; and, from information available to him from international sources, what is the sum paid in tax by a man with the same responsibilities and similar income in France, West Germany and the United States of America, respectively;(2) how much a married man with two children earning £5,000 a year gross pays in Income Tax; and, from information available to him from international sources, what is the sum paid in tax by a man with the same responsibilities and similar income in France, West Germany and the United States of America respectively;(3) How much a married man with two children earning £7,500 a year gross pays in Income Tax and surtax; and, from information available to him from international sources, what is the sum paid in tax by a man with the same responsibilities and similar income in France, West Germany and the United States of America, respectively;(4) how much a married man with two children earning £10,000 a year gross pays in Income Tax and surtax; and, from information available to him from international sources, what is the sum paid in tax by a man with the same responsibilities and similar income in France, West Germany and the United States of America, respectively.

The details asked for are given in the table below:—

TAX PAID BY A MARRIED MAN WITH TWO CHILDREN UNDER 11
Annual earnings	U.K.	France	West Germany	U.S.A.
£	£	£	£	£
2,500	552	135	316	199
5,000	1,401	633	1,063	745
7,500	2,590	1,444	2,068	1,492
10,000	4,073	2,404	3,190	2,408

(1) Figures for France, West Germany, and the U.S.A. relate to the tax year 1968; and for the U.K. to 1968–69.

(2) Incomes and tax in foreign countries have been computed by converting from and to the sterling equivalent at official exchange rates; they do not reflect differences in the cost and standard of living and differing salary levels abroad.

(3) The U.S.A. figures include State taxes as well as Federal taxes.

(4) The French figures include surcharges imposed for 1968 but do not include deductible social security contributions.

(5) The U.K. tax figures include the tax on family allowances for one child (amount for 1968–69 to £42 18s. in addition to the earnings shown).

Volume 773: debated on Friday 22 November 1968