§ Mr. Hannam
asked the Chancellor of the Exchequer what information he has as to the top income tax rates on (a) earned income and (b) unearned income in all countries of the European Community, the United States of America, Canada and Japan.
§ Mr. Ridley
The information requested is given in the table: 561W
Maximum rates of income tax—earned (employment) income Maximum rates of income tax—unearned income per cent. per cent. Belgium 74.8 (79.1) 72.0 (76.3) Denmark 39.6 (66.4) 39.6 (66.4) France 69.55 69.55 Germany 56 56 Greece 63.6 See Note 4 Ireland 60.0 60.0 Italy 72 72 (76.2) Luxembourg 58.4 58.4 Netherlands 72.75 72.75 United Kingdom 60.0 75.0 United States of America 50.0 (55.5) 50.0 (55.5) Canada 34.0 (50.3) 34.0 (50.3) Japan 71.25 (88.35) 75.0 (93)
1. The rates shown are those for 1982 or 1982–83; those for Belgium, and Italy are provisional. The figures in brackets include local income taxes at typical rates.
2. The maximum rates of income tax shown are the highest actually charged. For Japan the rate shown for employment income differs from the maximum nominal rate of tax because it takes account of an employment income relief.
3. (i) The rates for Belgium (employment income only), France and Luxembourg include an additional tax payable as a contribution to the funding of unemployment benefits, based on the income tax payable or taxable income. Without this additional tax the top rates are, respectively 72 (76.3) per cent., 65 per cent., and 57 per cent.
(ii) The rates for Greece include an additional tax payable as a 562W contribution towards the social security of farmers. Without this additional tax the rates would be 60 per cent. (employment income), 62–64 per cent. (unearned income).
4. Greece levies an additional tax on many types of unearned income. The rates vary with the type of income and range from 2 to 4 per cent. making the maximum rate on unearned income 65.5 to 67.5 per cent. including the surcharge mentioned in note 3(ii).