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The top 10% of taxpayers contribute 60% of income tax...

796 replies

MsPinkMarshmallow · 03/11/2025 11:43

I'm fed up of hearing that "high earners" will be targeted by the next budget.

The top 10% of taxpayers pay 60% of income tax.

Don't piss them off. They'll just leave the UK or work less so they're taxed less.

Some more stats: in 2024-25, the top 1% of income tax payers earned 13.3 per cent of total income and paid 28.2 per cent of income tax

35% of adults in the UK pay no tax at all

More from the Taxpayers Alliance here:

https://www.taxpayersalliance.com/briefing_share_of_income_tax_paid_by_percentile

<stands back and awaits kicking>

OP posts:
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6
GehenSieweiter · 04/11/2025 15:56

1dayatatime · 04/11/2025 15:49

Let's say we have society A where the average income is £35k but the highest 0.1% are on £350k (10 times the average)
or
Society B where the average income is £20k but the highest 0.1% are on £100k (5 times the average)

Assuming all other costs of living are the same, if you were on the average income which would you prefer £35k pa or £20k?

You cannot just assume all other costs would be the same though, so it's a pointless question.

Digdongdoo · 04/11/2025 15:57

GehenSieweiter · 04/11/2025 15:55

But evidence tells us that lots of businesses haven't attracted the best leaders by offering higher salaries. Corrupt business leaders are 10 a penny these days. Those motivated by money are not always the best leaders.

Edited

Then why would the business hire them? What's the logic?

GehenSieweiter · 04/11/2025 15:57

Vdlormp · 04/11/2025 15:47

Wealth and income are different. To my mind access to free education and health and financial support when you can’t work are what makes for a fairer society, as well as investment in breakdown barriers to social mobility. It may or may not be necessary or pragmatic to fun that through taxing higher earners but is the goal really to equalise income as much as possible? Is that really fair or helpful?

Income contributes to wealth creation.

Interested in this thread?

Then you might like threads about this subject:

MariaMyBeck · 04/11/2025 15:58

ThisRareRobin · 04/11/2025 15:36

Sorry I work in AI research and so I'm not going to accept these numbers as reliable. No disrespect to you whatsoever.

I use it to search the internet and use sources. I use the paid version as well. I then checked the sources and the numbers were right.

I even get the same numbers when using Gemini and copilot.

And now that I think about it. We weren't subsiding the company. They have razor thin margins anyway. We are not subsiding the company. We are subsiding individuals who have made poor financial decisions.

No-one should be on UC forever unless there's health issues.

Okay if you're on UC, needing a top up you should use it as a way to get to a better tomorrow. Not just stay on it.

GehenSieweiter · 04/11/2025 15:58

Digdongdoo · 04/11/2025 15:57

Then why would the business hire them? What's the logic?

No idea, the false perception that those motivated by money are the best leaders perhaps? Big charities are a prime example.

Digdongdoo · 04/11/2025 16:04

GehenSieweiter · 04/11/2025 15:58

No idea, the false perception that those motivated by money are the best leaders perhaps? Big charities are a prime example.

Edited

Any examples you can think of? I find it hard to believe that businesses and charities are all spending lots of money for that sake of it on people who are at bad at their jobs. You'd think they'd have worked it out by now!

1dayatatime · 04/11/2025 16:09

GehenSieweiter · 04/11/2025 15:56

You cannot just assume all other costs would be the same though, so it's a pointless question.

Yes I can - the cost of my orange juice imported from Brazil will cost the same, my gas and electricity will cost the same. The cost of my car imported from Japan will cost the same.

So which society would you prefer to live in?

MariaMyBeck · 04/11/2025 16:09

GehenSieweiter · 04/11/2025 15:34

You have a different idea of what's fair than me, that doesn't make my suggestion 'not fair'. I personally feel that a fairer society is one where wealth is distributed more evenly, and where everyone is rewarded for effort.

So you believe in theft? You think it's fair to take the stuff from Person A and give it to Person B?

I think it's better to reward outcomes rather than effort alone. If I put a lot of effort into a company that didn't at all provide what the market/consumer base wanted and it went bust should I be rewarded because I put a lot of effort into it?

Harassedevictee · 04/11/2025 16:11

MsPinkMarshmallow · 03/11/2025 11:56

Yes I saw that. The cheek of it!

If they add capital gains on the sale of a main home that'll stagnate the housing market and disincentivise downsizers as well. Even if it's over £1m that will include a lot of pretty average London homes.

The marginal tax rate over £100k is 60%, how is it fair that the government takes 60% of earnings over the threshold?

Why would anyone work for 40 pence out of every pound they earned?

I think the top rate of tax was 97% in the 1970s. Happy to be corrected.

The top 10% starts at c£70k. Which is much lower than most people realise.

ThisRareRobin · 04/11/2025 16:13

slightlyunimpressed · 04/11/2025 15:55

Is this for full time workers or based on an hourly rate? If someone chooses to work part time at minimum wage should their salary set the benchmark for the rest of the company?

Great question - but I did state "full time" in the post.

ThisRareRobin · 04/11/2025 16:15

MariaMyBeck · 04/11/2025 15:58

I use it to search the internet and use sources. I use the paid version as well. I then checked the sources and the numbers were right.

I even get the same numbers when using Gemini and copilot.

And now that I think about it. We weren't subsiding the company. They have razor thin margins anyway. We are not subsiding the company. We are subsiding individuals who have made poor financial decisions.

No-one should be on UC forever unless there's health issues.

Okay if you're on UC, needing a top up you should use it as a way to get to a better tomorrow. Not just stay on it.

I really do insist that I know how these models work. It is my full time job. Could you link me directly to the data rather than just saying you got AI to do it?

I won't engage with your second point as you just assert an opinion without any weight to it.

MariaMyBeck · 04/11/2025 16:18

GehenSieweiter · 04/11/2025 15:44

But you'd still need someone else to step in. Treating the one(s) you have well is surely better than treating them like a dispensable tool? For most decent folk it would be.

I always treat them professionally. I'm nice to the cleaners in the office. Say thanks to them. Ask them how their day as been. I don't obviously ever comment on their pay.

But it doesn't mean I think they should magically be entitled to any more money. And let's be honest most of us are replaceable anyway. Some people are probably hard to replace due to their talent and skill set. Some people it would take a bit of time to replace, some can be replaced just like that.

ThisRareRobin · 04/11/2025 16:21

MariaMyBeck · 04/11/2025 16:18

I always treat them professionally. I'm nice to the cleaners in the office. Say thanks to them. Ask them how their day as been. I don't obviously ever comment on their pay.

But it doesn't mean I think they should magically be entitled to any more money. And let's be honest most of us are replaceable anyway. Some people are probably hard to replace due to their talent and skill set. Some people it would take a bit of time to replace, some can be replaced just like that.

Maria, I'm beginning to think you're not arguing in good faith. I told you I work in AI as a 1% tax payer, and I also told you that I wanted the direct data on earnings, rather than to take your word for it about "what chatgpt said".

Why would you challenge this if you believe my talent and skill set is what rightly earns me my 1% wage?

These debates have to be in good faith, otherwise they're boring arguments.

BattyOldDear · 04/11/2025 16:21

Yes we should, they'll be fine, and they won't go away. You forgot an option

Araminta1003 · 04/11/2025 16:23

For those of you trying to restrict “income”, that is surely regressive in a society like UK where wealth is the determiner. Especially if you are both younger than some of us. The difference now appears in wealth inherited from parental generation primarily, which would absolutely mandate allowing young talented people who take risk to be rewarded for that risk.
A barista who has their own coffee shops and develops the eg Grind brand into supermarkets absolutely could do incredibly well. Seeing that now the market is moving to home coffees as NI stop the barista job working anymore. But to suggest my 17 year old who walks to the local cafe for a part time job should be paid a proper long term career wage is just absurd. She just won’t land a part time job anymore, if that were the case.

GehenSieweiter · 04/11/2025 16:25

1dayatatime · 04/11/2025 16:09

Yes I can - the cost of my orange juice imported from Brazil will cost the same, my gas and electricity will cost the same. The cost of my car imported from Japan will cost the same.

So which society would you prefer to live in?

You're making those assumptions, you're setting up a scenario to produce the answer you want.

ThisRareRobin · 04/11/2025 16:27

Araminta1003 · 04/11/2025 16:23

For those of you trying to restrict “income”, that is surely regressive in a society like UK where wealth is the determiner. Especially if you are both younger than some of us. The difference now appears in wealth inherited from parental generation primarily, which would absolutely mandate allowing young talented people who take risk to be rewarded for that risk.
A barista who has their own coffee shops and develops the eg Grind brand into supermarkets absolutely could do incredibly well. Seeing that now the market is moving to home coffees as NI stop the barista job working anymore. But to suggest my 17 year old who walks to the local cafe for a part time job should be paid a proper long term career wage is just absurd. She just won’t land a part time job anymore, if that were the case.

I haven't said anything whatsoever about restricting income or age.

I really appreciate the point you make; and I think flexibility in enabling those who are younger, older or have disabilities find meaningful work in this system is to be taken incredibly seriously. Thank you for highlighting this.

GehenSieweiter · 04/11/2025 16:27

MariaMyBeck · 04/11/2025 16:09

So you believe in theft? You think it's fair to take the stuff from Person A and give it to Person B?

I think it's better to reward outcomes rather than effort alone. If I put a lot of effort into a company that didn't at all provide what the market/consumer base wanted and it went bust should I be rewarded because I put a lot of effort into it?

Your answers are getting more ridiculous, paying tax is not theft, by any stretch. However, playing your game, maybe the top level is actually stealing from the bottom by paying the top ridiculously more than the bottom.

GehenSieweiter · 04/11/2025 16:29

These presumably weren't all full time jobs or jobs which involved working 8 hours a day, 5 days a week, for each one.

GehenSieweiter · 04/11/2025 16:29

MariaMyBeck · 04/11/2025 16:18

I always treat them professionally. I'm nice to the cleaners in the office. Say thanks to them. Ask them how their day as been. I don't obviously ever comment on their pay.

But it doesn't mean I think they should magically be entitled to any more money. And let's be honest most of us are replaceable anyway. Some people are probably hard to replace due to their talent and skill set. Some people it would take a bit of time to replace, some can be replaced just like that.

You clearly think you're better than them, the opposite may be true.

MsPinkMarshmallow · 04/11/2025 16:30

I agree that if employees of a business need subsidising by the taxpayer it's not a viable business. Businesses should pay living wages to their employees. I like the John Lewis type partnership model too whereby employees benefit from business profitability and have some say in how the business is run.

But people will behave in different ways, depending on how you incentivise them. As someone said, how come a sugar tax is supposedly a good idea because it stops people eating as much sugar but increasing tax for people who are already aggrieved at being taxed such a high percentage of the work THEY DO - let's not forget we are talking about people who work! - and we're all supposed to just suck it up?

OP posts:
TeenagersAngst · 04/11/2025 16:31

GehenSieweiter · 04/11/2025 15:56

You cannot just assume all other costs would be the same though, so it's a pointless question.

This scenario would only work if it were replicated globally. Otherwise people will pack up and work in the USA where potential earnings were unlimited.

Edited, sorry meant to reply to @1dayatatime original post

MariaMyBeck · 04/11/2025 16:32

ThisRareRobin · 04/11/2025 16:15

I really do insist that I know how these models work. It is my full time job. Could you link me directly to the data rather than just saying you got AI to do it?

I won't engage with your second point as you just assert an opinion without any weight to it.

https://corporate.sainsburys.co.uk/news/press-releases/preliminary-results-for-the-52-weeks-ended-1-march-2025

Here you go.

SpigTheFish · 04/11/2025 16:32

crackofdoom · 03/11/2025 12:08

It's interesting that every time the question of taxing the richest comes up, the debate immediately shifts to income tax.

Whereas the focus should be on unearned wealth, specifically land and property.

It's almost as if the discussion we need to have is being deliberately derailed. It's certainly not a discussion that the super rich would like us to have.

Bingo.