Marginal tax on income is far higher than 45% in many cases. For starters there's national insurance, but then there's also extra tax for people earning between

Marginal tax on income is far higher than 45% in many cases. For starters there's national insurance, but then there's also extra tax for people earning between about 50 and 60k pushing marginal tax for many above 60%, even 70% (and that's assuming they didn't go to university) A graduate with 3 kids on 55k, with their employer spending £1138 on a bonus, gets * £138 on NI (employer) * £20 on NI (employee) * £90 graduate tax (student loan payments which in the UK are income based) * £400 income tax * £290 child tax (the uk government give one parent about £1k a child per year, but then takes it away for those earning between 50 and 60k. Two parents can earn 50k each and receive the full amount, but a single parent on 60k gets nothing) Leaving them with just £200, or 17.5% of the money their company spent on them. For those of us earning 150k, who have paid off that student loan, have been fully taxed for the kids, get to keep about half of that £1138.