I think this is misleading. huge misconception. Firstly it’s 10%, not 5%, but more importantly this is only income tax. Income tax is a progressive tax (meaning higher earners pay more).
However other taxes are regressive. For example poorer people spend more of their income on day to day costs and therefore pay VAT on the majority of their income. Whereas wealthier people are able to save and invest and there is a much lower tax on that portion of their income.
Estimates from ONS and IFS show this pattern for overall tax burden (as a share of income):
- 🔹 Bottom 10%: Pay about 35–45% of their income in total taxes.
- 🔹 Middle-income groups: Pay 30–35%.
- 🔹 Top 10%: Pay 33–35%.
So you can see that overall the tax system is regressive meaning that lower earners pay more tax as a share of their income. As I’m sure you can imagine, this makes life incredibly difficult given their income is also much lower to begin with.
Yes overall, the wealthier contribute more tax in cash terms, but they’re in a privileged position to do so. Poorer people are working long hours, paid a pittance and a larger proportion of their income is handed over in tax as more of their income goes on day to day survival.
If you take away what is given in benefits, the poorest 45% still contribute over £100bn in taxes each year.