Fairer taxation supported

Support for a fairer tax system in the UK is overwhelming, according to a poll conducted for the Equality Trust think tank. However, contrary to popular belief, those with the highest incomes pay a smaller proportion of their earnings in tax than those at the lower end of the income scale.

The survey, conducted earlier this year, indicated that 96% of people in Britain feel that the tax system should be more progressive than it currently is.

More than eight in 10 of those surveyed believe that households with the highest 10% of incomes should pay a greater proportion of their income in tax than those in the bottom 10%. Almost as many believed that this was currently the case.

However, the Equality Trust report, Unfair and unclear, shows the opposite is occurring. Taking into account both direct and indirect taxation, those in the bottom 10% of earners pay 43% of their income in tax, whereas households in the top 10% pay 35%.

The report explains that while income tax and national insurance are broadly progressive, the bottom 10% of households pay roughly 23% of their gross household income in indirect taxes on consumption and more than four times as much of their income in council tax as the top 10%.

The Equality Trust has called on all the major parties to commit to a more progressive system.

www.equalitytrust.org.uk/news/96-public-favour-more-progressive-tax-system