In the UK, the stronger drag on wealth accumulation for the poor is the absurd taxation on the middle incomes (50K+), especially given the very low level of service of public schools, healthcare system, childcare, etc…
Not making a judgement call on which is better (its all trade offs), but this is what Americans don’t get - all those social benefits have a cost and a good portion falls on the middle to upper middle class.
I think a lot of Americans envision finding a European style social safety net by only taxing billionaires.
Agree that the stronger drag is the cost of childcare, but the poor don't earn 50k+
In fact, if you earn 50k as a single without dependants (or if you are a couple with 2x50k income) you're definitely richer than the majority of folks.
Also, the UK tax system is incredibly generous to high income folks: 40k+ tax exempt pension contributions, 20k ISA allowance, 12k cgt allowance. It means that you can accumulate a good chunk of capital before you'll even have to start paying taxes
mmarq|4 years ago
refurb|4 years ago
I think a lot of Americans envision finding a European style social safety net by only taxing billionaires.
berdario|4 years ago
In fact, if you earn 50k as a single without dependants (or if you are a couple with 2x50k income) you're definitely richer than the majority of folks.
Also, the UK tax system is incredibly generous to high income folks: 40k+ tax exempt pension contributions, 20k ISA allowance, 12k cgt allowance. It means that you can accumulate a good chunk of capital before you'll even have to start paying taxes