Tag: Income Tax - Tax Policy Associates

Posts tagged "Income Tax"

chart comparing tax at different wage levels in different countries

Jun 27, 2025 Analysis

Are UK workers over-taxed? The answer in four infographics

There’s a tax paradox in the UK. Overall, we’re paying more tax as a percentage of GDP than at any time since the 1940s – and most people believe they’re over-taxed. Yet, at the same time, the average UK worker paid less tax on their wages in 2024 than any year since the War, and […]

the laffer curve

Mar 31, 2025 Analysis

Untaxing – The Laffer curve, and the napkin that changed the world

Art Laffer drew a curve on a napkin in 1974 that he said proved that tax cuts would pay for themselves. This is sometimes right, and sometimes wrong – and it’s a mistake to just assume the answer without looking at the evidence. This article, written to accompany the first episode of Untaxing, looks at […]

Dec 20, 2024 Analysis

Tax cuts and tax rises: do tax cuts pay for themselves?

It’s often claimed that tax cuts will “pay for themselves”. There’s good reason to believe that some historic tax cuts have done precisely this – what does that tell us about proposals for tax cuts today? And what does history tell us about the potential to increase revenues by raising tax on the highest earners? […]

Oct 18, 2024 Policy

The tax longlist – 35 ways Rachel Reeves could raise £22bn

Rachel Reeves has said there is a £22bn “black hole” in the public finances, and that she’ll have to raise tax to fill it. Labour are heavily constrained by their pre-election promises, and that makes raising £22bn a challenging endeavour. But certainly not impossible. This is an updated version of my August article. I’ve previously […]

Jul 5, 2024 Policy

Half the British public doesn’t understand income tax – new data

Updated polling evidence from Tax Policy Associates and WeThink shows that half the public doesn’t understand a basic principle of income tax: the way that tax rates apply to income above a threshold. Half of voters believe that, once you hit the higher rate threshold, the 40% higher rate applies to all your earnings. The […]

Apr 21, 2024 Policy

Half the British public doesn’t understand income tax

New polling evidence from Tax Policy Associates and WeThink shows that half the public doesn’t understand a basic principle of income tax: the way that tax rates apply to income above a threshold. Our polling suggests that 50% of people believe that, once you hit the higher rate threshold, the 40% higher rate applies to […]

Jul 16, 2023 Analysis

Income and income tax by constituency

Here’s an interactive map showing incomes in each parliamentary constituency in 2020/21, shaded by median incomes. You should be able to zoom around with your mouse/fingers, and if you hover/touch a constituency you’ll see the full data, broken down by employment income, self-employment income and total income tax paid: You can see a full-screen version […]

Jun 27, 2023 Policy

Citizenship-based taxation. Should all UK citizens pay tax in the UK, even if they live abroad?

No. It’s a terrible idea. Here’s why. How the UK system currently works The UK taxes individuals based on their residence. If you live in the UK for 183 days in one tax year (or more than 90 days if you have a home here) then you are “resident” in the UK, and subject to […]

Dec 17, 2022 Analysis

Updated: do Brits pay more or less tax on our wages than people in other countries?

How do UK/Scottish taxes on wages compare with other countries’? It’s a simple question – but not straightforward to answer. Looking just at rates is misleading. This chart, for example, suggests that the top rate of UK tax is comparable with the US. That’s not really right. In the US, the top rate of Federal […]