The rich DO pay more: Highest-earning 1% in Britain pay almost a third of all income tax
Similar to the USA
The highest-earning 1 per cent of Britons pay almost 30 per cent of all income taxes, according to research. The 308,000 on the 50p top rate – who earn more than £150,000 – pay £47billion a year to the Treasury.
Since 2000, the share of tax paid by the highest earners has risen from 22.2 to 27.7 per cent.
Research by Oriel Securities shows the 3.7million who earned more than £35,000 and pay 40 per cent tax, hand over £57billion in tax, 34 per cent of the total.
The lower-earning 50 per cent pay £17bn – less than the housing benefit bill.
Overall, 90 per cent of all income tax is paid by half the working population.
About 3.7m people earn between £35,000 and £150,000, placing them in the bracket that pays the 40 per cent income tax rate. Collectively they pay £57bn in income tax, about 34 per cent of the total.
Michael Spencer, chief executive of the City broker Icap and former treasurer of the Conservative party, said: ‘The debate about tax in this country has sadly become more and more about politics and less and less about what is good for the economy and for growth.
‘All we hear about is “the rich must pay more; soak the rich”. Well the facts are clear; the rich are paying much more. 'Once you factor in national insurance, for each £1m paid as a bonus the employee receives £480,000 and the Exchequer gets £658,000.
‘The top marginal rate of income tax is actually 58 per cent, the highest in the developed world. No wonder we are losing mobile high earners with rates like that. ‘This is becoming a great and increasing loss to our country and we need to realise quickly that we cannot tax our way back to growth.’