Country’s wealthiest burdened by increasing taxes, says study

The tax burden on the country’s wealthiest individuals has nearly tripled since the 1970s, a study has revealed.

The research, published by the Daily Telegraph, revealed that the top one per cent of income taxpayers – who earn more than £162,000 a year – now pay almost a third (27 per cent) of all Income Tax.

It adds that today’s top 10 per cent of taxpayers, who earn more than £51,400, are paying nearly twice as much towards the UK’s total tax take than the wealthiest 10 per cent did in the 1970s.

Combined, the top 11 per cent pay 59 per cent of total income, up from 35 per cent in 1976.

Lord Lamont, a former Chancellor, said the UK has succeeded in attracting high-net-worth individuals, but increased taxes could reverse all the hard work done.

“It would be wrong to think you can always rely on someone else to pay taxes. Robbing Peter to pay Paul, Paul will always vote for that but it won’t always work.

“I’m not a great fan of ever increasing the personal tax allowance because everyone should pay some tax.”

Likewise, Andrew Brigden MP said: “Tax should never be a punishment for the wealthy. The higher you raise tax, the less money you get in. I think we have reached that point. If we put the top rate of tax back to 40pc [from 45pc] we would raise more revenue because people would be more encouraged to be productive.”