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The tax system needs to raise more money to support better public services, and it needs to ensure that everyone pays their fair share. But we don’t tax income from wealth at the same rate as income from work. As a result, a large minority of the top 1% of earners pay very low rates of tax - sometimes lower than people on modest incomes. At the top end, the amounts of tax paid vary widely between people with the same income, depending on the source of their remuneration, since some (investments, capital gains and so on) are taxed at much lower rates than earnings. Overall, the exchequer loses an estimated £20bn per year because of the discrepancy between headline tax rates and effective tax rates.
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Disadvantage undermines people’s capabilities and opportunities
Disadvantage undermines people’s capabilities and opportunities
High levels of inequality lead to low levels of social mobility
High levels of inequality lead to low levels of social mobility
Higher levels of inequality make a wide range of social problems worse for everyone
Higher levels of inequality make a wide range of social problems worse for everyone
Socio-economic inequality leads to environmental inequality
Socio-economic inequality leads to environmental inequality
Socio-economic inequality leads to health inequalities
Socio-economic inequality leads to health inequalities
Socio-economic inequality leads to more crime and less effective criminal justice
Socio-economic inequality leads to more crime and less effective criminal justice
Socio-economic inequality leads to political inequality
Socio-economic inequality leads to political inequality
The best way to become wealthy is to be wealthy already
The best way to become wealthy is to be wealthy already
The rising costs of living hit poorer households harder
The rising costs of living hit poorer households harder
The structure of our economy leads to huge regional inequalities
The structure of our economy leads to huge regional inequalities
The tax system could be designed to be more progressive
The tax system could be designed to be more progressive
There are still high levels of tax evasion and avoidance
There are still high levels of tax evasion and avoidance
Wealth inequality is much larger than income inequality
Wealth inequality is much larger than income inequality
