I’m sure that this is something that will surprise many. The UK actually has the most progressive income tax system among the G-8 economies.
You can also get some interesting information about progressivity from the two charts. A rough measure of that is the difference in the (average) tax rate shown on the two charts. A bigger difference shows a more progressive tax system:
- U.K.: 22.3%
- Italy: 21.1%
- America: 20.7%
- Canada: 20.1%
- Japan: 18.8%
- Germany: 16.6%
- France: 16.2%
- Russia: 0%
Not surprisingly, England tops the list: that’s why all their rock, movie, and sports stars live in other countries.
Leave aside the Yank’s inability to distinguish between the UK and England (although damn, this one should know better, he used to busk on the London Underground).
The difference in average tax rate between low earners and high earners is higher in the UK than in the other countries. We have a more progressive income tax system.
Doesn’t seem to do us all that much good on the inequality front though, does it? So, err, maybe a progressive income tax isn’t the solution to income inequality?