asked the Chancellor of the Exchequer what percentage of his earnings above £5,000, £8,500, £10,000, and £15,000 a year is retained after payment of income tax and surtax by a married man with two children and no unearned income; and what are the comparable figures for a similar man after payment of direct taxation in the United States, France, West Germany and Japan, based on information he derives from international organisations.
Is my hon. and learned Friend aware that many wage earners are receiving incomes not sufficient to keep their families at subsistence level? Is it not more important to turn attention to that type of person before turning to the more highly paid executives?
|PERCENTAGE OF ADDITIONAL EARNINGS (UP TO £100) RETAINED AFTER PAYMENT OF INCOME TAX AND SURTAX, OR THEIR EQUIVALENTS|
|Level of earnings||United Kingdom*||United States†||France||West Germany‡||Japan§|
|* Excluding the effect of the 10 per cent. surcharge, and assuming the children are both under 11.|
|† An equivalent rate of $5 = £1 has been assumed to allow for the substantially higher cost-of-living in the United States. The figures shown relate to California. The tax deducted includes Californian income tax which is partly deductible for Federal income tax; it also includes the proposed 6 per cent. Vietnam surcharge on Federal income tax.|
|‡ The scale rises continuously, and so the percentage remaining relates only to small increases in earnings above the levels given.|
|§ An equivalent rate of 1,010 Yen = £1 has been taken. The figure allows for Prefectural and Municipal Inhabitants Income Tax, not deductible for the National Income Tax.|