asked the Chancellor of the Exchequer if he will list the percentage of net tax reductions to the poorest 10 per cent. of taxpayers and the richest 7 per cent. resulting from his 1980 Budget.
|Tax in 1980–81|
|Income in 1979–80||Tax in 1979–80||Income in 1980–81||At 1979–80 rates and allowances||At proposed rates and allowances||Increase in tax at 1979–80 rates and allowances||Proposed reduction in tax||Percentage increase on 1979–80 in post-tax income at proposed rates and allowances|
[pursuant to his reply, 17 April 1980, c. 777]: The income tax reductions proposed in the Budget Statement go some way to offsetting the tax increases which have arisen at different income levels in the last year, as a result of inflation. The greatest reductions therefore necessarily go to those who have suffered the greatest increases. This is illustrated for those at the top and bottom of the income distribution in the table below, where the calculations are for a single person whose pre-tax income has increased in line with the price indexation percentage of 17·82 per cent:from about 24 per cent. of the £1,539 million reductions.