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Helen Miller
@HelenMiller_IFS
Are the rich paying their fair share
- f taxes?
An IFS public talk #IFStalks
Are the rich paying their fair share of taxes? Helen Miller - - PowerPoint PPT Presentation
Are the rich paying their fair share of taxes? Helen Miller - - PowerPoint PPT Presentation
Are the rich paying their fair share of taxes? Helen Miller @HelenMiller_IFS An IFS public talk #IFStalks George Harold Wilson Should five per cent appear too small Be thankful I don't take it all 'Cause I'm the taxman, And you're
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George Harold Wilson
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Should five per cent appear too small Be thankful I don't take it all 'Cause I'm the taxman, … And you're working for no
- ne but me
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Broadly, do you think the UK tax system is fair?
Yes No – rich people don’t pay enough No – rich people pay too much I don’t know
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Results
10 20 30 40 50 60 Don’t know 22% Yes system fair 16% 11% 51% No rich pay too much No rich pay too little
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No – rich people don’t pay enough
30 35 40 45 50 55 60 65 70 75
‘Rich don’t pay a lot’ group Before any information 51% think unfair ‘Rich pay a lot’ group 33% 72%
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Tip 1: Know who’s currently paying tax
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1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100
Who pays income tax?
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1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100
Income tax revenue
£175bn
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1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100
4 in 10 adults don’t pay income tax 25% of income tax 30% of income tax 10% of income tax 12% of income
Income tax revenue
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1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100
£162,000 gets you into top 1% £51,400 gets you into top 10%
Income tax revenue
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Who are the rich?
“people think wealthy people are people earning about £10,000 a year more than them”
Ben Page, Ipsos MORI
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Tip 2: Don’t get hung up on any one tax – all taxes are part of a system
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Which taxes are fair?
10 20 30 40 50 60 70 80 Inheritance tax Income tax Tax on cigarettes Not fair Fair
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Unemployed Annie Penny pensioner Minimum wage Mark Well-to-do Sue Richy Rich
Income from work
£0 £0 £13,650 £70,000 £200,000
Tax
(inc council tax)
- £912
- £912
- £2,000
- £22,535
- £84,235
Benefits
+£10,147 +£14,932 +£486 +£0 +£0
Net income
£9,235 £14,020 £12,136 £47,465 £115,765
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Unemployed Annie Minimum wage Annie Annie with a family Well-to-do Annie Pensioner Annie
Pre-tax income
£0 £13,650 £13,650 £70,000 £0
Tax
(inc council tax)
- £912
- £2,000
- £2,305
- £22,535
- £912
Benefits
+£10,147 +£486 +£11,510 +£0 +£14,932
Net income
£9,235 £12,136 £22,855 £47,465 £14,020
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Top 10% of households pay 30% of all tax Tax and benefits together:
- increase income by 27% for poorest 10%
- decrease income by 33% for richest 10%
About 60% of redistribution is across periods
- f life
The UK tax and benefit system
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Tip 3: Remember, people respond to taxes
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Are the rich paying their fair share of taxes?
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Tip 1: Know who’s currently paying tax Tip 2: Don’t get hung up on any one part of the system Tip 3: Remember, people respond to taxes