asked the Minister for Finance (a) the gross cost and (b) the net cost to the Revenue of reducing the top income tax rate to 55 per cent or alternatively of increasing the income level at which the top rate of income tax is levied to £15,000 for a single person and £30,000 for married couples (i) in 1986 and (ii) in a full year.
Written Answers. - Top Income Tax Rate.
46.
The only relevant information available as to cost is in relation to the direct cost to the Exchequer in income tax foregone if the changes referred to in the question were enacted for the income tax year 1986-87 in addition to the changes proposed in this year's Finance Bill. The cost to the Exchequer is estimated as follows:
|
1986 £ million |
Full year £ million |
|
|
Reduce top rate of income tax to 55 per cent |
14.8 |
24.6 |
|
Increase income threshold for top rate of tax to taxable income in excess of £15,000 for single and widowed persons and £30,000 for married persons: |
||
|
—by the extension of the 35 per cent band |
155.0 |
258.3 |
|
—by the extension of the 48 per cent band |
38.6 |
64.4 |