HOW TAX CUTS OPERATE
LONDON, April 19. The "typical” British family, comprising a married couple and two children, earning £7OO a year, will pay £l7 income tax in the coming year instead of £2B, under the Budget proposals. Assuming that all their income is earned (that is, not gained by rent, interest or dividends), such a family earning £IOOO will pay £BS in tax, compared with £lOl in the current year. If their income is £SOO, they will be tax-free instead of paying 225. Other examples of the tax cuts are:
A married couple with three children will in future pay no tax unless their income exceeds £6OO a year.
Old New tax. tax. Unmarried persons— £ £ £300 income .. ..15 14 £500 .. 56 55 £700 ..113 111 £1000 ..218 211 Married couples with no dependents— £300 2 nil £500 ..32 27 £700 .. .. .. 79 74 £1000 ..178 168 Married couples with one child— £400 2 nil £500 .. .. ..32 5 £700 49 41 £1000 ..139 126
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Bibliographic details
Press, Volume XCI, Issue 27639, 21 April 1955, Page 13
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163HOW TAX CUTS OPERATE Press, Volume XCI, Issue 27639, 21 April 1955, Page 13
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