The often emotive debates concerning the cost of living and what constitutes a “fair share” of someone’s income that us paid in tax is rarely based on evidence.
The Institute for Fiscal Studies has voiced concerns that the Exchequer is increasingly reliant on a very small group of taxpayers for a very large proportion of tax revenues and has said that taxing them more is not a sustainable long-term approach. But high taxes aren’t just an issue for those at the top of the income spectrum. This year, Value Added Tax will be the government’s second biggest revenue raiser and as a share of income it hits lowest income households hardest.
This research looks at how much households across the income spectrum and regions of the UK pay in taxes and how much they receive in benefits and services such as education and the NHS.