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Income Tax

Volume 949: debated on Tuesday 2 May 1978

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asked the Chancellor of the Exchequer if he will publish a table similar to that published in reply to the hon. Member for Norfolk, North, Official Report, 24th June 1977, column 608–10, comparing the total income tax liability in 1938–39, 1945–46, 1960–61, 1970–71 and 1978–79 of (a) two single people sharing the same accommodation, (b) a married couple without children, (c) a two-wage married couple without children, (d) a married couple with two children aged not over 11 years and (e) a married couple with four children aged 16,14,12 and nine years, assuming gross earnings equal to 50 per cent., 75 per

EarningsTwo single peopleMarried couple without childrenMarried couple without children where wife is also workingMarried couple with two children not over 11Married couple with four children aged 16, 14, 12 and 9
50 per cent. of average earnings39·50148·2098·2014·50
75 per cent. of average earnings305·40495·80167·90427·80313·90
100 per cent. of average earnings642·10857·50455·10789·50675·60
150 per cent. of average earnings1,365·601,581·001,178·601,513·001,399·10
200 per cent. of average earnings2,089·102,304·501,902·102,236·502,122·60
The figures for the other years are the same as those given in the replies to the hon. Member's previous questions on 24th June 1977 [

Official Report, Vol. 933, c. 608–611] and 25th July 1977 [ Official Report, Vol. 936, c. 65–66]. The figures for 1978–79 have been calculated on the same basis, except that average earnings have been notionally estimated as follows: on the basis that in October 1977 a man on average earnings had not yet received an increase in the current pay round, it may be assumed that his earnings will rise by a further 10 per cent. to October 1978 in accordance with the Government's guideline.

The figures in columns ( d) and ( e) reflect the lowering of the child tax allowance but do not show the increase in child benefit which was made at the same time.

asked the Chancellor of the Exchequer what the loss of revenue would have been for 1977–78 if the United Kingdom had adopted the same income tax rates and thresholds as in France; and if he will express this figure as a percentage of total revenue from income tax.

I would refer the hon. Member to the reply I gave him on 12th April 1978.