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Tax, UK edition

by Laurent GUERBY Sat May 19th, 2007 at 09:23:08 AM EST

Who pays more tax relative to revenue in the UK, first decile of income or last decile?


Answer via Chris Dillow who quotes this National Statistics report (PDF).

The important piece is table 16:

First income decile member has in average 9417 pounds of income and pays 907+3242=4149 pounds in taxes: 44% tax rate.

Last income decile member has in average 96504 pounds of income and pays 9046+24770=33816 pounds in taxes: 35% tax rate.

If you count "benefits in kind" as income, 97% of it being Education and NHS, the figure changes to 24.5% of total income for first decile (+7495 pounds of income) and 33.8% of total income for the last decile (+3424 pounds of income).

That says a lot about the motives of education and NHS would be privatizers.

Note: this is for non-retired households. And thanks to someone for pointing out I used the wrong column (didn't change ranking though :)

Display:
The numbers you use for the last income decile are the ones for the average. (Right most column of numbers...)
1st dec.10th dec.average
income94179650438665
benefits in kind749534245521
indirect taxes324290465442
direct taxes907247708460
income+benefits169129992844186
total tax41493381613902
tax rate w/o benefits 44%35%36%
tax rate w. benefits 24.5%33.8%31.5%
by someone (s0me1smail(a)gmail(d)com) on Sun May 20th, 2007 at 07:52:33 AM EST
Thanks, now fixed.

Hopefully it doesn't change ranking and conclusions :).

by Laurent GUERBY on Sun May 20th, 2007 at 08:01:22 AM EST
[ Parent ]
Yep, conclusions very much hold...

Those benefits in kind really bring the bottom up and top down.

by someone (s0me1smail(a)gmail(d)com) on Sun May 20th, 2007 at 08:38:26 AM EST
[ Parent ]
Do you know if UK has those? I don't see them here.
by Laurent GUERBY on Sun May 20th, 2007 at 09:32:29 AM EST
[ Parent ]
It's a bit confusing.

There is tax on house purchases (Stamp duty) and local taxes take the form of "Council Tax" assessed on house that you live in and if you own an empty house you have to pay some reduced rate and if you rent you (rather than the landlord) pay...

I'm tired so I might have forgotten something.

As I recall, Council tax is broadly a bit regressive, although it does have exemptions. The picture is complicated by the fact that they have been too scared for a while to rerate properties, so the tax is based on values pre-boom.

by Metatone (metatone [a|t] gmail (dot) com) on Mon May 21st, 2007 at 08:58:36 AM EST
[ Parent ]
I've been meaning to do a diary on just how regressive Council Tax is.

Bush is a symptom, not the disease.
by Migeru (migeru at eurotrib dot com) on Mon May 21st, 2007 at 09:33:00 AM EST
[ Parent ]
Thanks, there's a Council Tax line in the table so it's included.

Rerating of properties for "taxe fonciere" hasn't been done for a very long time in France too.

by Laurent GUERBY on Mon May 21st, 2007 at 01:04:34 PM EST
[ Parent ]


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