asked the Minister for Finance if he will elaborate on the statements made on page 11 of the Interim Report of the Government-ICTU Working Party on Taxation of January, 1980, that the cost of an income splitting system was estimated to lie in the range around £100 million depending on the details of the scheme adopted and based on the income levels, income tax allowances, income tax rates and bands prevailing at present and if he will elaborate on the basis of this estimate.
Written Answers. - Income Splitting.
474.
The estimated cost of £100 million was calculated as the cost arising in a full year by reference to the personal allowances and rates of tax in force for 1979-80 applied to current income levels. The scheme of income splitting envisaged the application in full to all married couples of double the single persons allowance and doubled rate bands, whether only one spouse or both had an income. A deduction was made for the discontinuance of the wife's earned income allowance.