asked the Chancellor of the Exchequer at what point 50 per cent. of personal income is taken by income tax in the case of a married man without children and no other personal reliefs in each of the countries of the European Community.
The following table shows the point at which the effectiveaverage—rate of personal income tax for a married man, without children, reaches 50 per cent. of gross income from employment in each of the EEC countries. The treatment of other forms of earned income and of the various kinds of investment income varies too widely both within and between countries to permit of meaningful comparison:
| £ | ||||
| Belgium | … | … | … | 34,400(a) |
| Denmark | … | … | … | 20,000(b) |
| France | … | … | … | Not reached |
| Germany | … | … | … | 91,300 |
| Ireland | … | … | … | 13,300(c) |
| Italy | … | … | … | 100,000(d) |
| Luxembourg | … | … | … | 110,000 |
| Netherlands | … | … | … | 25,200 |
| United Kingdom | … | … | … | 16,365(e) |
Notes:
Rates of exchange at end June 1975 have been used. Figures take into account:
( a) Small local income tax surcharge.
( b) Local income tax at Copenhagen rate.
( c) Recent proposal for 10 per cent. surcharge.
( d) Temporary surtax for 1974.
( e) Rates of tax and allowances proposed for the year.
asked the Chancellor of the Exchequer at what point the current top rate of personal income tax is reached; and whether there is any overall limit, in each of the countries of the European Community.
The following table shows the point at which the current top rate of personal income tax is reached on employment income in each of the EEC countries. The treatment of other forms of earned income and of the various kinds of investment income varies too widely, both within and between countries, to permit of meaningful comparison.
| Top marginal rate | Single | Married man without children | |
| Per cent. | £ | £ | |
| Belgium | 72 | 51,300 | 51,300 |
| (75·6) | |||
| Denmark | 39·6 | 7,400 | 7,400 |
| (60·2) | |||
| France | 48·6 | 38,800 | 38,800 |
| Germany | 56 | 25,300 | 50,300 |
| Ireland | 77 | 10,960 | 11,304 |
| Italy | 82 | 382,000 | 382,000 |
| Luxembourg | 57 | 9,700 | 19,100 |
| Netherlands | 71 | 28,200 | 28,500 |
| United Kingdom | 83 | 20,676 | 20,956 |
Notes:
Figures in brackets include local income tax where applicable.
Rates of exchange at end June 1975 have been used.
Minimum allowances and latest rates of tax in force or proposed for the current year have been assumed.
There are overall limits in two countries of the Community. In Belgium national income tax may not exceed 50 per cent. of taxable income plus two surcharges, making a maximum effective rate of approximately 60 per cent. In Denmark combined income taxes and social security contributions may not exceed 66¾ per cent. of taxable income.