Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Another sucker punch for the poor amid Covid-19 crisis as new study reveals Britain’s top 1% enjoy 17% of nation’s income

Another sucker punch for the poor amid Covid-19 crisis as new study reveals Britain’s top 1% enjoy 17% of nation’s income

According to new analysis, Britain’s highest-paid one percent took home 17 percent of the country’s income ahead of the coronavirus pandemic – more than was previously thought – provoking a bitter backlash.
A study by Warwick University, the London School of Economics (LSE) and the Resolution Foundation – which took into consideration the concentration of taxable capital gains – showed that the top one percent had a larger slice of the income pie than was previously thought, and it was increasing.

The team of economic researchers analyzed previously confidential data from HMRC – the UK government department responsible for the collection of taxes – and found that some capital gains were, in reality, sources of income, and these were heavily concentrated among the well-off.

Capital gains tax is a tax on the profit made when someone sells an asset that’s increased in value. The study noted that taxable capital gains were frequently related to people’s work and were more akin to earnings from employment than passive investment returns.

Dr Andrew Summers, assistant professor at the LSE, said: “Capital gains are taxed at much lower rates than regular income, but the legal line between these is very blurred. A lot of capital gains are, in fact, just repackaged income going to the already-rich.”

The timing of the study comes as a bitter pill for the low earners in society, many of whom are having to risk their own health during the coronavirus outbreak by continuing frontline work in the health and social care, transport and retail sectors – for little return in their pay packets.

The study has prompted an angry response on social media, with many riled by the apparent inequality existing in Britain between the ‘haves’ and the ‘have-nots’. Some suggested that it was “about time we taxed the rich properly.”

Others sarcastically poked fun at those that would rather pour scorn on “those pesky ‘low-skilled’ migrants, harvesting our food and healing our sick” than the unfairness in the richest getting more of the country’s income.

One commenter remarked that, while the gap between the rich and the poor gets bigger, there will still be many who “will defend their right to earn the obscene sums.”

Responding to the report, Shadow Chancellor Anneliese Dodds suggested that there need to be significant changes to the British economy so that rewards are shared out more equally. Dodds said: “We must have a fairer settlement after this crisis – with those with the broadest shoulders making more of a contribution.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
×