New analysis has shown that the share of tax paid by the wealthiest Britons has trebled since the 1970s.
Around 27 per cent of income tax revenue comes from the richest one per cent of UK taxpayers (those individuals earning in excess of £162,000 a week).
Data which was studied at length by The Daily Telegraph also revealed that the top 10 per cent of earners contributed around 59 per cent of income tax. This compared with 35 per cent in 1976.
A number of politicians voiced their consternation at the trend, with the former Chancellor, Lord Lamont, concerned that the Government was “robbing Peter to pay Paul.”
And serving MP Andrew Bridgen said that an increasing reliance on wealthy taxpayers could ultimately threaten the country’s productivity.
“Tax should never be a punishment for the wealthy. The higher you raise tax, the less money you get in,” he said.
“I think we have reached that point. If we put the top rate of tax back to 40 per cent [from 45 per cent] we would raise more revenue because people would be more encouraged to be productive.”
In response to the criticism, the Treasury argued that reforms to the tax system meant that “hard working people are keeping more of what they earn.”
To find out how we can assist you, contact Milsted Langdon today. For more information, please visit milstedlangdon.co.uk.