Terrywoodenpic said:
These figures come out quite different in the UK (Government figures)
http://www.parliament.uk/commons/lib/research/rp2003/rp03-074.pdf
The bottom earners pay combined direct and indiret taxes of 42% of income.
Top Earners ----------------------------------- 34%
The bottom quartile account for 7% of national tax
The top Quartile account for 43% of nation tax
This shows that low income groups pay the greatest share of their income in Tax.
Terry__________________________________
Amen! Truly I say to you: Gather in my name. I am with you.
I can't dispute the figures; I can dispute the methodology of the way the statistics are presented. What you have presented, terry, is a false image.
From:-
http://www.hmrc.gov.uk/leaflets/irinsert.htm
Tax allowances 2005-2006
Personal allowance£4,895Personal allowance (age 65-74)1 £7,090Personal allowance (age 75 and over)1£7,220Married couples allowance (where at least one
partner born before 6th April 1935 but under 75(2,3)£5,905Married couples allowance (age 75 and over)2,3 £5,975Minimum amount of married couples
allowance for those born before 6 April 1935(3) £2,280Income limit for age-related allowances £19,500Blind persons allowance£1,610
1 The higher personal allowances for taxpayers aged 65 and over are reduced by
£1 for every £2 of income above the income limit (£19,500). However, they
cannot be reduced below the basic level of the personal allowance (£4,895)
available to those aged under 65.
2 The married couples allowances are only available to taxpayers where at least
one partner was born before 6 April 1935 and are reduced by £1 for every £2 of
income above the income limit (£19,500). However, they cannot be reduced
below the minimum amount of £2,280. The higher levels of personal allowance
are reduced before the higher levels of married couples allowance.
3 These allowances, unlike the personal allowance, are not income you can receive
without having to pay tax. Instead, they give relief at a set rate of 10% of the
allowance you are entitled to. For example, those receiving the married couples
allowance of £5,905 will have their tax bill reduced by up to £590.50
(10% of £5,905).
Rates of tax
Income tax
Rates of tax and bands of taxable income
Starting rate 10%£1 - £2,090Basic rate 22% £2,091 - £32,400Higher rate 40% £32,401 and above
In other words, Income tax is payable, as one would imagine on income.
A person Earning up to £32 401 per annum, pays:0% on £4,895, 10% on the next £2090, and 22 % on the remaining(ie)£25 415. ie someome earning £32400 will end up paying £5800 total.ie 17.9 % of income.
Someone earning £64000 P.a pays 0% on £4895, 10% on next £2090, 22% 0n 25425, and 40% on £ 31591 ie 39.1% of income.