The need to increase taxes on high earners
- rpwills
- 14 hours ago
- 1 min read
One of the mistakes made by those arguing for more taxes on wealth is that they ignore the impact of high earnings. Higher earners: can purchase more wealth; pay any extra taxes on wealth; compete for housing; create more greenhouse gas emissions.
An individual on £150,000 has 2.9 times the net pay of the average person, while someone on £300,000 has 5.4 times the net pay. Compared to the majority of people on benefits or mainly reliant on the state pension such individuals have very substantial funds after taxes.
Higher earners tend to obtain more of their income from sources not subject to National Insurance, reducing the amount of tax they pay compared to the majority of people in work.
Unless higher earners are taxed more existing inequalities in society will persist.
Gross pay | Net pay | Compared to average | Income tax | National Insurance |
£31,600.00 | £31,600 | 5,286 | £2,114 | |
£100,000 | £68,567 | 2.1 | £27,432 | £4,011 |
150,000.00 | £91,286 | 2.9 | £53,703 | £5,011 |
£200,000.00 | £117,786 | 3.7 | £76,203 | £6,011 |
£250,000.00 | £144,286 | 4.6 | £98,703 | £7,011 |
£300,000. | £170,786 | 5.4 | £121,203 | £8,011 |
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