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Who pays taxes


Quote 27

"It would be to legalize, to organize, to systematize injustice itself, for it would be proclaiming that there are men born to render, and others born to receive, gratuitous services."

   --  Frédéric Bastiat

Who really pays taxes


This chart shows that less than 40% of the U.K population pay net income tax.
This means that most people are net income tax receivers.










Tax transparency

Those who call for politicians to declare incomes/tax returns, need to consider a few things.
  • Will they make a separation from the income that politicians make from public activities which the public has an interest in, or do they want politicians to declare private income which the public has no right to know about.
  • Will they accept that if politicians release their incomes on the basis that we are paying them and need transparency, that this will also need to apply to all people receiving income from the government, including civil servants and beneficiary's.
  • Will they accept that a persons income belongs to the individual earning it, and therefore the reporting of it, is their business and their business alone.

Burden of tax

If a tax rise falls more heavily on the rich, then a tax cut should in all fairness reduce the burden on the rich.

Why must the middle and low earners pay tax

Governments don't always manage their finances over the business cycle correctly no matter how much they say they will the evidence is clear. A narrow tax base will lead to large swings in the budget, generating huge deficits in bad years and surpluses in good years. The system will fall apart as the narrow base feels overtaxed compared to other countries and move operations overseas. 
The tax base must be wide enough to cope with the strain of a large government.

Links

References


http://www.bbc.co.uk/news/business-17397199  - Nice chart of uk tax bands.

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