Tuesday, 24 April 2012
Who pays income tax?
I received this chart from Jim. It shows, as he suggested in an earlier comment, that the top 1 percent of wage earners pay 27 percent of all income tax receipts. The bottom 50 percent of earners pay just over 10 percent of total income tax receipts.
Income tax only accounts for just over a third of total tax receipts, so the overall tax burden on the lower 50 percent is higher. Taxes such as excise duties and VAT tend to be highly regressive.
Thanks Jim for the chart. It is much appreciated. If anyone else finds something interesting, please send it to me here. I am always looking for interesting content for my posts.