4 May 2012    |    Uncategorized

Average tax rates of the wealthy

The recent dischttp://www.blogger.com/blogger.g?blogID=482728466090655276#editor/target=post;postID=5910929704354960133losure that 6% of individuals with an income in excess of £10m paid less than 10% in tax has stirred a furore.

An examination of the raw data produces an extremely interesting analysis of the tax rates of the highest earners in the UK.  (The table may not round to exactly 100%).

Income
£100-£150k£150-£250k£250-£500k£500-£1m£1m-£5m£5m-£10mOver £10m
Above 40%0%6%73%81%80%81%72%
30%-40%67%77%18%11%10%8%12%
20%-30%24%13%5%4%5%4%8%
10%-20%8%3%2%2%2%3%3%
Under 10%1%2%2%2%3%4%6%

There are clearly some major political issues about equality and fairness that need to be address, but there are also some very valid reasons for at least some of the results. These need to be addressed from an informed viewpoint and not by knee-jerk reactions that result in adverse impacts in other areas – particularly charitable donations.

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