TaxPersonal TaxTax system successfully helping poor says ONS

Tax system successfully helping poor says ONS

Office for National Statistics figures show that tax system is redistributing wealth

The UK tax system is successfully redistributing wealth from the rich to the
poor according to Office for
National Statistics
(ONS).

Figures released by the ONS showed that top-earning households earned £68,700
a year on average in 2005/2006, while the lowest tier brought 16 times less a
year with earnings of £4,230.

After taxes had been levied, however, the gap narrowed with the tip strata
earning £49,300 and the lowest group taking in £13,500.

Critics, however, said that under Gordon Brown the tax system had become
unfair.

According to the FT
the Taxpayer’s
Alliance
said the ONS numbers revealed that poor homes were paying
a higher proportion of their income in tax than poorer homes.

Further reading:

CBI launches ‘tax taskforce’

Brown under fire over CBI tax credit claim

HMRC slammed over tax credits bungle

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