2
Members will note my predecessor estimated in
1983 that the cost of introducing a
a scheme of
separate taxation for married couples would be
$285 million in the year of implementation, and
around $180 million in a full year.
The
increase to $400 million arises because of
inflation and adjustments to tax thresholds
since then.
The difference between the
implementation and full year costs given in
1983 arose because, at that time, adjustments
to tax thresholds applied not only to the
forthcoming fiscal year, but also to final tax
liabilities for the then current year. In view
of the fact that since 1985 such adjustments
have applied only to the
year, there would now be
forthcoming fiscal
no revenue loss
and
differential between the implementation
full year costs.
(WP2375A)/(4)