[wdmmg-discuss] child benefits for higher tax-payers

Mon Oct 4 22:42:36 UTC 2010

Direct link to the PDF that Theodore is referring to (figure 1 on page 13):

http://clients.squareeye.com/uploads/2020/documents/ESRC_preston%20FINAL.PDF

Francis

On Mon, Oct 04, 2010 at 12:13:40PM +0100, Theodore Hong wrote:
> Julian Todd <julian at goatchurch.org.uk> wrote:
> > It's a shame we don't have a graphic showing the distribution of
> > payouts to the different household earning brackets lined up against
> > the total income tax take on each of these households.
> 
> I recently came across just such a graphic:
> 
> The Distributional Impact of Public Spending in the UK
> (see Figure 1 on page 13)
> http://www.2020publicservicestrust.org/publications/
> 
> Note however that this only considers cash payments.  Which brackets
> benefit from the rest of government spending is a much more
> complicated question.
> 
> > I have got into frequent arguments with my grandfather who always
> > thinks it's unfair for high rate earners to be able to claim this
> > benefit, which they then spend on shopping.
> >
> > He should perfectly well know that the benefit effectively clawed back
> > through their higher tax rates.
> 
> It depends on what you think the fair rates of tax should be.  If you
> think a fair rate for high earners is 40%, but actually after benefits
> they end up paying 39% net, you might think they should pay more.  If
> you're happy with the high rate being 39% then I agree with you.
> (Obviously these numbers aren't accurate, but you get the principle.)
> 
> theo
> 
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