Tag Archives: income

A progressive approach to tax

The US Congressional Budget Office has recently published some information on who pays income tax in the US (or, at least, who did so in 2010).  There’s an interesting graph included showing how effective tax rates vary by income group over time. Continue reading

Reducing the disincentive

During the most recent Budget, the Chancellor of the Exchequer scrapped the 50% tax rateAnalysis carried out by HMRC indicates that, as theorised previously, the income from this tax rate is below that expected by the government.  Continue reading

Disincentivising high incomes

A 50% tax rate was introduced to the UK in April 2010, to apply to all earnings over £150,000.  This high tax rate was devised to raise additional income for the treasury by increasing the payments made by the highest earners, therefore increasing the Robin Hood effect of income tax.

However, it is likely that this higher tax rate is unlikely to increase tax receipts to the degree that the government would like.  Continue reading