inequality context

Question 1

wealth inequality

Answer 1

wealthiest 10% own 45% of wealth
no single country in the world where bottom 80% are weathier then top 5%

Question 2

causes income inequality

Answer 2

in 1974 when uK top rate of tax was 83% with a Gini coefficiency of 0.25

in 2024 top rate of income tax Is 45% Gini coefficient Is 0.34

Question 3

welfare and tax reducing inequality

Answer 3

before tax and benefits richest 20% houses incomes are 20X larger than poorest 20%

gap is reduced to 4X larger when tax and benefits are taken into account

help but not eliminate

Question 4

tax contributions

Answer 4

top 1% of taxpayers pay 30% of UK’s income tax revenue increase from 35% 2010 despite a reductui in top rate income tax

bottom 1/3 contribute 0.01%

Question 5

inheritance tax

Answer 5

2024- 325,000 + 40% tax

although only generates 7bn a year less than 4% gov revenue

Question 6

progressive tax

Answer 6

Personal Allowance: 0% tax on earnings up to £12,570.

Basic Rate: 20% tax on earnings between £12,571 and £50,270.

Higher Rate: 40% tax on earnings between £50,271 and £125,140.

Additional Rate: 45% tax on earnings over £125,140.