Top earners pay 57% in taxes

Britain’s top earners are paying substantially more than half their earnings
back to the government in taxes, when all factors are taken into account, a new
study has found.

Patrick Minford, professor of economics at Cardiff University, said the
chancellor’s ‘tax-and-spend policies’ had pushed the overall marginal tax rate
on Britain’s highest earners to 57.1%.

Average taxpayers are not much better off, paying around 48.5% once national
insurance contributions, value added tax, excise duties are added to income tax,
The Business reported.

Minford said: ‘My figures represent the percentage of the wage paid by an
employer that is taken by the state – in national insurance, indirect tax and
income tax.

‘It turns out that higher-paid employees get approximately £43 worth of goods
and services valued at their true cost for an extra £100 paid for their labour
by their employer. For the employee on average earnings, the equivalent marginal
tax rate is about 48%.’

Gordon Brown will reveal his Budget on 22 March.

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