Source: Adam Smith Institute
by Madsen Pirie
“In 1978-9, before the election of Margaret Thatcher, the top rate of UK income tax was 83%, and any income from investment was called ‘unearned income’ and had a 15% surcharge added, giving a top tax rate of 98%. At that time, the top 1% of taxpayers contributed 11% of income tax revenue, and the top 10% contributed 35%. Today the top rate of income tax is 45%. Now, using the most recently published data for the 2023-2024 tax year, the top 1% of taxpayers paid 28-29% of all income tax, and the top 10% of taxpayers paid 59-60% of all income tax. … When people talk of having rich pay their fair share, I imagine very few of them have any idea of what share ‘the rich’ are already paying. If the top 10% paying 60% of the total is not a fair share, perhaps we should ask them what figure they would consider fair?” (09/15/26)