It’s difficult to insist that Britain doesn’t have a progressive taxation system when we get numbers like this. That some 87,000 Londoners paid more in income tax than the entirety of Wales and Scotland. Actually, it’s impossible to insist that we’ve not got a progressive income tax system when we’ve got numbers like this:[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] In London, the picture is even more stark. The city has 4.2 million income tax payers, but just 87,000 individuals earning over £200,000 a year paid nearly half the £43.8bn income tax raised in the capital. It’s uncomfortable to say it, but if we lose all those absurdly paid investment bankers to Brexit, the hit to the public purse will be painful, as they are clearly paying vast amounts to the Treasury. Those London bankers, lawyers and their ilk paid more income tax in 2016-17 than the entire sum raised from every income tax payer in Scotland and Wales combined. [/perfectpullquote]
As to whether the system is progressive enough, or too much such, that’s a different argument. It definitely is, isn’t it?