UK’s Poor Drowning in Taxes

April 26, 2017 Taxation in UK

UK income taxesLONDON – Poor people in the UK are feeling the impact of tax much harder then their wealthy counterparts.

On April 25th the Office for National Statistics of the UK released a new report on the effects of taxes on household income in the UK, showing that the country’s poorest individuals feel a disproportionately hard effect from taxes.

It was shown that the poorest 10 percent of people in the UK country pay out as much as 42 percent of their income out in taxes, which include consumption taxes.

Conversely, the richest 10 percent of people pay 34.3 percent of their income out as taxes.

Further, the incomes of the top 20 percent of earners was shown to be approximately GBP 84,700, or as much as the bottom 20 percent, who earned one 12th of that amount, approximately GBP 7 200.

The report highlighted that the impact of VAT is disproportionately high for low-income households, who lose as much as 12.5 percent of their income to VAT, while high-income households only lose 5 percent of their income to the tax.