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Income Tax (International Comparisons)

Volume 773: debated on Friday 22 November 1968

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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 earningsU.K.FranceWest GermanyU.S.A.
£££££
2,500552135316199
5,0001,4016331,063745
7,5002,5901,4442,0681,492
10,0004,0732,4043,1902,408

  • (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).