The largest ever survey of poverty in the UK claims that one in three Britons is now below an internationally accepted minimum living standard.
The authors argue that levels of poverty seen today can be traced back to the Thatcher government’s decision to cut the top rate of income tax from 83% to 40% during the 1980s and a subsequent rebalancing of the tax system towards taxes such as council tax and VAT.
In 1979, the top fifth paid 37.6% of their incomes in tax and the poorest fifth only 30.5%.
By 2011, this pattern had reversed, with the bottom paying 36.6%, more than all other groups, including the top fifth at 35.5%.
In addition, there has been an explosion in personal and corporate tax avoidance schemes. Independent experts estimate that such schemes cost the UK economy £25billion every year.
Mack and Lansley say the true figure is likely to be far higher, as up to a quarter of the world’s wealth is held in offshore accounts.
They say the Blair Government managed to reduce poverty in the UK via the benefits system. But it failed to reduce real inequality and close the gap between rich and poor by addressing taxation.
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Breadline Britain: 20MILLION now living in poverty as landmark study reveals how tax system creates inequality - Mirror Online
The authors argue that levels of poverty seen today can be traced back to the Thatcher government’s decision to cut the top rate of income tax from 83% to 40% during the 1980s and a subsequent rebalancing of the tax system towards taxes such as council tax and VAT.
In 1979, the top fifth paid 37.6% of their incomes in tax and the poorest fifth only 30.5%.
By 2011, this pattern had reversed, with the bottom paying 36.6%, more than all other groups, including the top fifth at 35.5%.
In addition, there has been an explosion in personal and corporate tax avoidance schemes. Independent experts estimate that such schemes cost the UK economy £25billion every year.
Mack and Lansley say the true figure is likely to be far higher, as up to a quarter of the world’s wealth is held in offshore accounts.
They say the Blair Government managed to reduce poverty in the UK via the benefits system. But it failed to reduce real inequality and close the gap between rich and poor by addressing taxation.
more
Breadline Britain: 20MILLION now living in poverty as landmark study reveals how tax system creates inequality - Mirror Online
