Magazine |
Poorest in society pay most in tax

The poorest 20% of people in the country are losing more of their income in tax than they did in 1997 with the richest 20% paying 20% less, according to research by the Lib Democrats.

The party’s analysis of Treasury figures revealed that in 1997 the poorest 20% of households had a gross income of £7,300 each and paid £2,760 in tax, meaning they paid 37.8% of their income in tax.

By comparison the 2008 (the last date for which the figures are available) figures reveal that they paid 38.7% of their income in tax.

In contrast, the figures from 1997 for the richest 20% of households indicate that this group paid 35.3 % of their income in tax but in 2008 they paid just 34.9%.

The Liberal Democrats claim the evidence shows the Government has levied unfair taxes for the last 13 years. As the party’s leader, Nick Clegg, unveiled the party’s manifesto pledge on 14 April, he announced a plan to raise the personal allowance to £10,000 and pledge a £17bn tax switch, which he claims will give £700 to millions of people who are on low-middle incomes.

In a statement Mr Clegg said: ‘Our plans would be the biggest overhaul of British taxes since the Second World War.’

19/04/10