Some benefits are classed as income and taxed and some are not. In the U.K here are the taxabe/non taxable benefits.
UK income tax
Income tax introduced during the Napoleonic war.
Pitt's income tax was levied from 1799 to 1802, when it was abolished by Henry Addington during the Peace of Amiens. Addington had taken over as prime minister in 1801, after Pitt's resignation over Catholic Emancipation. The income tax was reintroduced by Addington in 1803 when hostilities recommenced, but it was again abolished in 1816, one year after the Battle of Waterloo. The United Kingdom income tax was reintroduced by Sir Robert Peel in the Income Tax Act 1842. Peel, as a Conservative, had opposed income tax in the 1841 general election, but a growing budget deficit required a new source of funds. The new income tax, based on Addington's model, was imposed on incomes above £150 (£11,956 as of 2014),.
The highest rate of income tax peaked in the Second World War at 99.25%. It was slightly reduced after the war and was around 90% through the 1950s and 60s.
Tax revenues as a percentage of GDP for the UK in comparison to the OECD and the EU 15.
In 1971 the top-rate of income tax on earned income was cut to 75%. A surcharge of 15% on investment income kept the top rate on that income at 90%.
If income tax is raised by 7p, benefits should be lowered by the same amount.
The honest working person is hit every time.
Income tax in invasive to our privacy
Income tax taxes success