Top 1% of earners pay 30% of all income tax

[Nagel]

I was surprised by this statistic. Also when Margaret Thatcher came to power the top earning 1% of earners contributed just 11% of income tax.

 

http://www.thesundaytimes.co.uk/sto/news/uk_news/National/article878361.ece

[Expat owl]

The top 1% earn in an average above £160,000pa each which surprised me as I thought it would be higher.

[L00b]

I was surprised by this statistic.

I'm not, in the least: it's an old statistic, in rich vs poor debates on here.

 

I for one look forward to the (usual-) forthcoming posts by the (usual-) suspects claiming

 

(i) it's not enough,

(ii) they can afford it,

(iii) the income divide gets ever wider so it's only fair,

(iv) other similar comments about other people's income

 

[Obelix]

Mmm I'd have said it was more like 20% if you'd asked me. I know the figures changed from the early 1980's but not to that extent...and yet people still want them to pay yet more tax... because it's just unreasonable that some people manage to earm more than them...

[chem1st]

Alcoholics pay the most alcohol DUTY.

 

Smokers pay the most tobacco and cigarette DUTY.

 

At least income tax is kind of progressive.

 

NI is regressive and is essentially an income tax nowadays.

 

Council tax highly regressive.

[Jason Bourne]

I was surprised by this statistic. Also when Margaret Thatcher came to power the top earning 1% of earners contributed just 11% of income tax.

 

http://www.thesundaytimes.co.uk/sto/news/uk_news/National/article878361.ece

 

The Sunday Times is owned by that tax-dodging scumbag Rupert Murdoch.

 

Mr Murdoch only pays about £5,000 income tax a year.

 

This either means (a) he only earns about £25,000 a year or (b) he really is a tax-dodging scumbag.

[Nagel]

Mmm I'd have said it was more like 20% if you'd asked me. I know the figures changed from the early 1980's but not to that extent...and yet people still want them to pay yet more tax... because it's just unreasonable that some people manage to earm more than them...

 

It was 20.8% 10 years ago, rising to 29.8% now.

[WeX]

The Sunday Times is owned by that tax-dodging scumbag Rupert Murdoch.

 

Mr Murdoch only pays about £5,000 income tax a year.

 

This either means (a) he only earns about £25,000 a year or (b) he really is a tax-dodging scumbag.

 

Jason you need to learn how the tax system works before making such comments.

 

I would own a £1,000,000 company and pay £0 income tax if I took £600+ a month in salary and simply dividended myself the rest.

[Nagel]

Jason you need to learn how the tax system works before making such comments.

 

I would own a £1,000,000 company and pay £0 income tax if I took £600+ a month in salary and simply dividended myself the rest.

 

Your company would have to pay Corporation Tax on its profit. Then what remains can be distributed as dividends.

 

£600/month salary is £7,200 (actually you could take £9,440 before paying income tax).

 

So your companies profit after paying your salary assuming there were no other expenses would be £1,000,000 - £7,200 = £992,800

 

You would pay 23% Corporation Tax (or thereabouts), so you would pay £992,800 x 0.23 = £228,334 in tax.

[I1L2T3]

Very interesting.

 

It could be possible that the top earners are masking a collapse in tax receipts from the 99%?