§ Mr. MacGregor
asked the Chancellor of the Exchequer on what assumptions for increases in incomes he has based his estimates for the 1974-75 tax yields on income tax and surtax, as outlined in the Financial Statement and Budget Report, Table 9.
§ Mr. Trotter
asked the Chancellor of the Exchequer what are the highest rates of personal tax charged on (a) earned and (b) unearned incomes in the following countries: France, Germany, Holland, Italy, Sweden, the United Kingdom and the United States of America.
§ Dr. Gilbert
It is difficult to make comparisons with other countries of what we would describe as the top marginal rate but subject to many qualifications the information is as follows:
Employment income Per cent. Other earned income Per cent. Investment income Per cent. France … 48.6 60 60 Germany … 54.6* 54.6* 54.6* Holland … 71 71 71 Italy … 72 72 (86.2) 72 (86.2) Sweden … 54 (77) 54 (77) 54 (77) USA … 50 (55.5) 50 (55.5) 70 (73.3) UK … 83 83 98 * 57.2 per cent. including Stability Surcharge expiring 30th June 1974.
Figures in brackets include local income taxes on the following basis:
Italy: at top rates local taxes are not charged on employment income.
Sweden: at the average rate.
USA: at a typical rate (California). The State taxes are deductible for the Federal.