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by Quarrelsome 1235 days ago
> In the UK at any rate, the top 1% of earners pay 33% of all income tax.

that statistic is disingenuous without also stating how much of the national income the top 1% earn. i.e. Its obvious that the top 1% pay the most tax because they earn the most.

2 comments

Actually, the most relevant statistic (which is, of course, much more difficult to calculate) is how much tax each pay relative to their disposable income—ie, the amount left over after necessities such as food, shelter, and clothing have been paid for.

With any vaguely reasonable calculation of this, it becomes painfully clear that the poor pay far, far too much (because they have, effectively, no disposable income) and the rich pay far, far too little (because almost all of their income is disposable).

I agree with the sentiment.

However, disposable income has a technical meaning. When the ONS publishes disposable income statistics, they mean income remaining after tax (I presume they subtract income tax and NI, but not council tax because that's local). They don't subtract e.g. energy bills or food.

I'm open to a different descriptor.

From where I sit, "income after tax" doesn't really seem to fit as the meaning of "disposable income", though I suppose I can see why it would look that way to an office like ONS.

Now, to be clear, "where I sit" is in the US, and I've never seen "disposable income" be given an official usage like that over here; its only meaning that I've known is, much more colloquially, just what I said: the amount of money you have left over each $timePeriod after paying for the basic necessities of life. (How one defines those, specifically, varies greatly from person to person.)

If it's anything like other countries, then they make substantially less than what a proportional taxation would imply.

In the us for example the top 1% pay 6 times the taxes than the bottom 50% on a dollar for dollar basis

unless you supply the raw figures as well, it remains a sleight of hand.

Let me put this another way; anyone in the 99% would happily swap income with the 1% and then pay twice as much tax on that income than the current 1% do.

I find any conversation about the "1%" that centers around discussions of % paid in anything to be highly amusing/sad. Talk in absolute dollars and see how things turn out.