Wednesday, 9 October 2013

So the rich pay more pounds in tax than the power - not a surprise - but what about as % of their income ?

Top earners pay 1/3 of all income tax screams the headline.  Actually the treasury figures say 29.8% which is 3/10ths but not 1/3 !

"To qualify for that top 1 per cent, an individual would have to have an income of £160,000 a year. People who earn more than £1 million a year will contribute 11.8 per cent of all tax.
Total income tax revenue for HMRC is about £150 billion a year."

Note how income tax in has been replaced in the article by "all tax" - whereas income tax is less than 1/3, probably even 3/10 of Government income.

But before we get carried away with the idea that this shows the Conservative argument are right, several questions have to be answered.

1) Wouldn't it be better if the other 99% of people were paid more so they could pay more income tax ?

2) What % of their income do the richest 1% pay in income tax ? The top rate of tax is meant to be 45% but I would be astounded if the top 1% paid on average more than 10-20% of their income in income tax.

3) What % of "all tax" the richest 1% pay

4) What % of their wealth the wealthiest 1 pay in tax compared to the norm.


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