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Incomes Policy

Volume 928: debated on Wednesday 23 March 1977

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asked the Chancellor of the Exchequer what progress he has made with the talks, announced in the course of his statement of 15th December 1976 on the Government's economic measures, with the TUC and other interested bodies

Effective rate of income tax*in
per cent.per cent.per cent.
Earnings equivalent to—
Average earnings†15·215·020·0
Twice average earnings23·522·428·3
Three times average earnings27·025·636·7
Five times average earnings34·834·849·5
* Includes surtax where appropriate in 1970–71.
† Average earnings have been taken as the New Earnings Survey estimates of the average earnings at April of each year of full-time adult male workers aged 21 and over in all occupations.
The calculations take account of the tax on family allowance, and clawback. It has been assumed that the taxpayer

concerning the interrelationships between changes in earnings, social security benefits, pensions and rates of direct and indirect taxation ( Official Report, column 1533); and if he will make a statement.