Benefits Outweigh Taxes for 9 Out of 10 in UK
September 22, 2015 Taxation in UK
LONDON – Most taxpayers in the UK receive more in benefits then they pay in tax, but this number drops significantly if examined over a single year.
The majority of taxpayers in the UK receive more in benefits then they pay in taxes, according to the results of a new study published on September 22nd by the UK think tank institute for Fiscal Studies.
It was noted that over a lifetime approximately 93 percent of individuals will receive more in benefits then their receive in taxes, however, if the scale is reduced to a single year then only 64 percent of individuals would be receiving more in benefits then paying out in taxes.
The difference in the amount of benefits received varies due to the strong shifts in circumstances which taxpayers may face.
It was also noted that the approximately half of the redistribution of wealth via benefits seen over a lifetime is across various periods of life, and not between different people, meaning that while people may pay more tax during employed phases, they may still have received benefits at different times in their life.
Further, it was n that income inequality in the UK is significantly lower if examined over a lifetime, with the national Gini coefficient dropping from a level of 31 percent in a single year to 15 percent over a lifetime.
Photo By: Evan Bench