|>>|| No. 6197
Are our tax rates too low?
Someone earning £20,000 with a full personal allowance has an effective tax rate of around 9% on all their income. Someone earning £50,000 has an effective tax rate of 18.4%. The most a higher rate taxpayer with an income up to £100,000, and full personal allowance, will have is an effective rate of c. 29%. Obviously there's also National Insurance, but that's 2% for higher rate taxpayers.
Graph from: https://www.gov.uk/government/publications/budget-2016-documents/budget-2016