2 ms·

The top income tax rate was 90% for decades until it dropped to 75% in the 70s (although you could still end up paying 90% in some cases even then). Today it’s

The top income tax rate was 90% for decades until it dropped to 75% in the 70s (although you could still end up paying 90% in some cases even then). Today it’s 45% Since 1965 companies pay a much lower corporation tax. Tax to GDP has been a little bit up and down but only recently did it breach the 1970s peaks. I don’t think this matches with “ Taxation in the UK is currently at the highest levels in recorded history.”

berdario 3y ago
> Since 1965 companies pay a much lower corporation tax Since it's not straightforward to get figures for before 1965: https://en.wikipedia.org/wiki/United_Kingdom_corporation_tax#History https://en.wikipedia.org/wiki/United_Kingdom_corporation_tax... > Until 1965, companies were subject to income tax on their profits[11] at the same rates as was levied on individual taxpayers > In addition to income tax, companies were also subject to a profits tax, which was deducted from company profits when determining the income tax liability > At the time of Hugh Gaitskell's 1951 budget, the profits tax was 50% for distributed profits and 10% for undistributed profits. > The tax rates fell to 22.5% on distributed profits and 2.5% on undistributed profits by 1957 This means that in 1951, if a company had a profit of 100, the taxes were *at least* (I'm using undistributed profits, not taking into account higher rates, etc.etc.) 52.75 (10% of 100, plus 47.5% of the remaining 90% of 100) The 47.5% is the standard rate of "nine shillings and sixpence in the pound", per https://api.parliament.uk/historic-hansard/commons/1951/apr/10/income-tax-1 https://api.parliament.uk/historic-hansard/commons/1951/apr/... In 1959, a company with a profit of 100, would've instead paid in taxes *at least* 40.28 (2.5% of 100, plus 38.75% of the remaining 97.5% of 100) The 38.75 is the standard rate per https://hansard.parliament.uk/commons/1989-03-03/debates/3ccce9ae-35fc-429a-8c0c-bf40a44b0999/TaxThresholdsAndIncomeTax https://hansard.parliament.uk/commons/1989-03-03/debates/3cc... see also: "seven shillings and ninepence in the pound" per https://api.parliament.uk/historic-hansard/commons/1959/apr/07/income-tax https://api.parliament.uk/historic-hansard/commons/1959/apr/... The current corporation tax main rate is 25% (the small profits rate is even less: 19%)

berdario 3y ago

> Since 1965 companies pay a much lower corporation tax Since it's not straightforward to get figures for before 1965: https://en.wikipedia.org/wiki/United_Kingdom_corporation_tax#History https://en.wikipedia.org/wiki/United_Kingdom_corporation_tax... > Until 1965, companies were subject to income tax on their profits[11] at the same rates as was levied on individual taxpayers > In addition to income tax, companies were also subject to a profits tax, which was deducted from company profits when determining the income tax liability > At the time of Hugh Gaitskell's 1951 budget, the profits tax was 50% for distributed profits and 10% for undistributed profits. > The tax rates fell to 22.5% on distributed profits and 2.5% on undistributed profits by 1957 This means that in 1951, if a company had a profit of 100, the taxes were *at least* (I'm using undistributed profits, not taking into account higher rates, etc.etc.) 52.75 (10% of 100, plus 47.5% of the remaining 90% of 100) The 47.5% is the standard rate of "nine shillings and sixpence in the pound", per https://api.parliament.uk/historic-hansard/commons/1951/apr/10/income-tax-1 https://api.parliament.uk/historic-hansard/commons/1951/apr/... In 1959, a company with a profit of 100, would've instead paid in taxes *at least* 40.28 (2.5% of 100, plus 38.75% of the remaining 97.5% of 100) The 38.75 is the standard rate per https://hansard.parliament.uk/commons/1989-03-03/debates/3ccce9ae-35fc-429a-8c0c-bf40a44b0999/TaxThresholdsAndIncomeTax https://hansard.parliament.uk/commons/1989-03-03/debates/3cc... see also: "seven shillings and ninepence in the pound" per https://api.parliament.uk/historic-hansard/commons/1959/apr/07/income-tax https://api.parliament.uk/historic-hansard/commons/1959/apr/... The current corporation tax main rate is 25% (the small profits rate is even less: 19%)