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Personal Taxation (International Comparisons)

Volume 32: debated on Wednesday 24 November 1982

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer if he will update the reply given on 30 July 1980, Official Report, c. 706, showing starting rates of income tax and top rates in each of the United Kingdom, Germany, the Netherlands, Canada, Denmark, the United States of America, Belgium, France and Japan.

The information requested is given in the following table:

Starting rates of income tax per cent.Top rates of income tax per cent.
United Kingdom3075
Germany1856
Netherlands16·372·75
Canada15·534
Denmark14·439·6
United States of America1250
Belgium21·672
France7·266
Japan775

Notes:

  • 1. The rates are those for 1982 (1982–83) except in the case of France (1981) and Belgium (1980—latest finally enacted).
  • 2. The starting rates are in all cases the lowest applicable when tax actually becomes payable. These figures relate to a married couple with two dependent children, and to the husband's employment income.
  • 3. The top rates of tax shown are the highest charged. In some countries employment income is charged at a lower top rate. For the United Kingdom, that rate is 60 per cent., and for Japan 71·25 per cent.
  • 4. The rates shown may differ from the nominal rates of tax in the countries concerned, because, where appropriate, they take account of any employment income reliefs, minimum expense deductions and other standard reliefs.
  • 5. Local income taxes, which are not included in the table, can sometimes make a significant difference. In Denmark, the Copenhagen rate of tax raises the starting rate to 41·2 per cent. and the top rate to 66·4 per cent. In Canada, the Ontario rate of local tax raises the top rate to 50·3 per cent. Japan's top rate becomes 93 per cent. for investment income and 88·35 per cent. for employment income.