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Taxation

Volume 130: debated on Wednesday 30 March 1988

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To ask the Chancellor of the Exchequer if he will construct an index, with 1978–79 equalling 100, of the changes in the level of income tax and national insurance contributions for each subsequent year for a taxpayer on (a) half, (b) two thirds, (c) average, (d) five times average and (e) 10 times average earnings for households where the taxpayer is (i) single, (ii) married with no children, (iii) married with two children and (iv) married with four children, in all cases assuming the wife does not work, using a similar form to his answer of 1 May 1987, Official Report, columns 287–90.

[holding answer 17 March 1988]: The table shows (a) income tax plus national insurance contributions less child benefit, where appropriate, as a percentage of gross earnings; and (b) real net income after tax, NIC and child benefit in index number form with 1978–79 equalling 100. The calculations assume that the taxpayer has no reliefs other than the appropriate personal allowance and that national insurance contributions are at the contracted-in rate. Average earnings are those for full-time males paid at adult rates whose pay was not affected by absence. Figures for 1987–88 and 1988–89 are provisional.

Half

Two-thirds

One

Five

Ten

(a)

(b)

(a)

(b)

(a)

(b)

(a)

(b)

(a)

(b)

1981–8226·9100·029·6101·632·3103·446·4117·253·2150·4
1982–8327·3100·330·1101·633·0103·145·9119·353·0152·4
1983–8427·0104·630·0105·833·0107·245·1125·752·5159·6
1984–8526·5108·329·6109·432·7110·745·3128·952·6164·0
1985–8626·2110·329·4111·332·6112·445·5130·352·7165·9
1986–8725·8115·628·9117·031·9118·545·7135·452·8172·7
1987–8825·0120·827·8122·830·5125·045·9139·453·0178·1
1988–8923·8125·826·3128·328·9131·036·1168·738·0240·2

Married

1978–7916·0100·021·9100·027·8100·050·5100·066·5100·0
1979–8016·0101·721·1102·626·3103·841·5120·250·7149·6
1980–8117·9102·822·6104·227·3105·842·9121·251·5152·4
1981–8220·898·725·0100·429·3102·445·2115·752·6148·0
1982–8320·899·425·3100·829·8102·544·6117·952·3150·1
1983–8420·1104·124·9105·329·6106·743·7124·451·9157·4
1984–8519·3108·324·2109·329·2110·543·9127·851·9161·7
1985–8618·9110·323·9111·229·0112·344·0129·252·0163·7
1986–8718·9115·023·7116·428·5118·044·2134·252·1170·3
1987–8818·9119·123·1121·227·4123·844·5138·052·3175·6
1988–8917·9123321·9126·126·0129·335·1165·337·6235·2

Married with 2 children (both under 11)

1978–792·4100·011·5100·020·9100·048·8100·065·6100·0
1979–801·4102·810·2103·218·9104·140·0119·050·0147·8
1980–814·9102·512·9103·620·8105·241·6119·850·8150·4
1981–827·399·414·9100·622·5102·443·9114·651·9146·2
1982–836·9100·614·9101·422·8102·843·2116·851·6148·4
1983–845·9105·614·2106·222·4107·342·3123·351·2155·5
1984–855·0109·813·5110·222·0111·142·4126·651·2159·9
1985–865·0111·213·5111·722·0112·642·6127·951·3161·7
1986–875·7115·213·8116·121·9117·742·9132·751·5168·2
1987–886·2118·413·7120·221·1122·843·3136·451·6173·3
1988–896·1121·513·0124·020·0127·533·9162·637·0231·2

Married with 4 children (two under 11, one 11–15 and one over 16)

1978–79-11·7100·00·1100·013·3100·046·7100·064·5100·0
1979–80-13·3103·0-0·8102·611·6103·638·5117·349·3145·5
1980–81-8·1101·73·1102·014·3103·940·3117·850·2147·8
1981–82-6·299·54·899·815·8101·642·5112·851·3143·8
1982–83-7·0100·94·5100·915·9102·241·8115·150·9145·9
1983–84-8·4106·23·5105·815·3106·940·9121·550·4153·0
1984–85-9·3110·32·7109·814·8110·741·0124·850·5157·3
1985–86-8·9111·33·1110·915·1111·941·2126·050·6159·1
1986–87-7·5114·73·9114·715·2116·441·6130·650·8165·3
1987–88-6·4117·34·2118·214·8121·042·0134·151·0170·2
1988–89-5·8119·44·2121·114·1124·932·7159·236·4226·4