UK – British families have the highest tax rates in the world, 73%

iStock_TaxAccording to a recent study by the charity CARE, British families pay the highest taxes in the world – 73%.

The study came to its conclusions by using the ‘Marginal Effective Tax Rate’ (the combined effect on one person’s earnings of income tax and the withdrawal of state benefits) and is based on a married couple with two children where one of the parents is the sole earner.

The report shows that the METR in the UK is an astonishing 73%.

An METR of 73% means a household with a single earner would only see 27 pence go into the home from each additional £1 earned.

On a comparative basis, the income tax bill faced by UK one-earner couples with children on an average wage is significantly out of line with many other developed countries. For this group, the income tax burden is 67 per cent greater than the OECD average.

taxgraph1

 

More information on this at the RT website and the CARE website

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