asked the Chancellor of the Exchequer, further to his reply to the hon. Member for Norfolk, North, Official Report, 24 July, c. 382, by how much the cost of introducing a personal tax allowance for either sex at £1,820 would be reduced if the taxpayer were allowed only to set the allowance against taxable income within the standard rate tax band.
By about £330 million for a full year at 1980–81 income levels.
asked the Chancellor of the Exchequer, further to his reply to the hon. Member for Norfolk, North, Official Report, 28 July, c. 473, showing the percentages of earnings absorbed by income tax and social security contributions in selected countries, if he will confirm that the figures given are for a married couple with two children; and if he will say to which year they apply.
I am sorry that the notes which should have accompanied the table showing the percentages of earnings absorbed by income tax and employees' social security contributions in selected countries were omitted from my published reply. These are as follows:
1. All figures relate to the tax year 1980 or 1980–81, except for France (1979) whose income tax rates are fixed in arrear and Japan (1979).
2. Figures are for a married man with two children under 11. It is assumed that all income is employment income of the husband. Income from child benefit has not been taken into account. It is assumed that the United Kingdom employee is not contracted out of the new pension scheme.
3. United Kingdom average earnings are the April 1979 figures for adult full time male workers from the New Earnings Survey updated to March 1980 in line with the increase in average earnings. The calculations for the United Kingdom reflect the proposals in the 1980 Finance Bill.
4. Exchange rates used are those for 14 July 1980.
5. Figures in brackets include local income taxes; for the United States of America, the Californian rate, and for Japan the rate which applies to the majority of the population.
6. Personal reliefs, minimum expenses deductions, employment income reliefs, other flat rate reliefs and deductible social security contributions, have been taken into account.