Written question asked by David Laws (Liberal Democrat) on Wednesday, 2 February 2005, in the House of Commons. It was due for an answer on Wednesday, 9 February 2005. It was answered by Baroness Primarolo (Labour) on Wednesday, 9 February 2005 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what estimate he has made of the cost of reducing marginal deduction rates for taxes and benefits to 50 per cent. or less for all those on tax credits; and if he will make a statement. - Includes no figures.

Answer: Mr. Laws: To ask the Chancellor of the Exchequer what estimate he has made of the cost of reducing marginal deduction rates for taxes and benefits to 50 per cent. or less for all those on tax credits; and if he will make a statement. [214813] Dawn Primarolo: Marginal deductions rates depend on the combined impact of income tax, national insurance contributions, tax credits, housing benefit, council tax benefit and, for some people working fewer than 16 hours a week, also on income support and jobseeker's allowance. It is not possible to calculate the cost of guaranteeing that nobody receiving tax credits faced marginal deductions rates above a particular level without making detailed assumptions on changes to each of these factors.

Secondary information

Type: Written question
Reference: 430 c1597-8W; 214813
Session: 2004-05
Subjects: Costs Deductions Social security benefits Welfare tax credits Taxation Marginal tax rates
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk