Austin Macauley 22 September 2015

Report: 93% put more into the tax pot than they take out

Report: 93% put more into the tax pot than they take out image

A new report has found 93% of people pay more in taxes during their lifetime than they take out of the social security system.

The Institute for Fiscal Studies (IFS) said its lifetime study provided a more accurate picture of average contributions than those that examine a single year. The latter, for example, would currently show just 64% of people put in more than they take out.

The report also showed income inequality is lower when looked at across a lifetime and taxes tend to be redistributed across periods of life rather than between people.

‘Understanding the lifetime impact of policies matters because individuals experience considerable changes in their circumstances over their lives,’ said Peter Levell, a research economist at the IFS and an author of the report.

‘While over a third of individuals receive more in social security than they pay in taxes in a single year, this is true for very few when you look over an entire lifetime.’

Fellow author Barra Roantree, also a research economist at the IFS, said: ‘The sharp distinction often made in policy debates between “working” and “non-working” families is not especially useful: in reality very few individuals are permanently out of work, the poor are not always poor and, albeit to a lesser extent, the rich are not always rich.’

IFS senior research economist, Jonathan Shaw, said the study highlighted how having a tax and benefit system that assesses on a year to year basis ‘doesn’t do especially well at redistributing resources towards the lifetime poor’.

He added: ‘Targeting lifetime redistribution more effectively may require new policies that take longer-run circumstances into account.’

Time for a council tax precept to fund CCTV image

Time for a council tax precept to fund CCTV

The crisis in funding for CCTV systems is not being addressed by the government or the police and is leading to the curtailment of this vital service in local authorities across the country. How can we ensure that communities that want this service continue to receive it, asks Tom Reeve.
SIGN UP
For your free daily news bulletin
Highways jobs

Service Director – Development & Regulation

West Berkshire Council
Up to £96,585 per annum
We are looking for a candidate with the passion for place making and a successful track record in leading and developing large multi-service teams.  Newbury, Berkshire
Recuriter: West Berkshire Council

Mayoralty & Business Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£41,292 - £50,034
The Mayoralty & Business Manager will be responsible for maintaining the reputation of both Mayoralties and promoting a positive image of... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Joint Assistant Director - Communities and Wellbeing

Babergh & Mid Suffolk
£75,000
Babergh and Mid Suffolk District Councils are at the forefront of joint working and are a progressive award-winning partnership Ipswich, Suffolk
Recuriter: Babergh & Mid Suffolk

Social Worker - Early Intervention Team

Essex County Council
Up to £207 per day + Umbrella
About the RoleWorking to support adults, and their families, who have complex social needs and are more vulnerable as a result of disability, exclusio England, Essex, Harlow
Recuriter: Essex County Council

ESAB Safeguarding Adult Review Officer

Essex County Council
Up to £35027 per annum
ESAB Safeguarding Adult Review OfficerPermanent, Full TimeUp to £35,027 per annumLocation
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue