Poorest households pay 47% of gross income in tax



I’m always a little wary of anything with the Taxpayer’s Alliance name on it, always regarding them as a Tory front group… are they starting to bite the hand that (alledgedly) feeds them ?

Order Of Truth

poortaxA report just published by the Taxpayer’s Alliance has found that the poorest 10% of households in the UK pay 47% of their gross income in direct and indirect taxes.

Analysis of Office for National Statistics figures for 2012-13 by the organisation shows that VAT accounts for 13.9% of the gross income of the bottom 10%, whose total gross income was £9,743 (inclusive of benefits), and 7.2% is accounted for in council tax.

Combined direct and indirect taxation accounted for £4611 of gross income, leaving £5132.

In contrast, the wealthiest 10% of households paid 35% of their gross income (including benefits) in taxation, with income tax accounting for 19.1%.

Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, says in the report “This analysis shows how pernicious our tax burden has become. Not only does the tax system hit the poorest hardest, but those at the top are already contributing far…

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