Why is a tiered income tax rate "fair"

[philg]

This is something that has always bemused me - the principal that it is fair for higher wage earners to pay higher rates of tax?

I'm happy with the idea that higher earners PAY more tax, but the idea that the RATE of tax increases as your income does ensures that higher earners pay proportionately MORE tax

For example

Using round numbers (they are easy), most people get a tax free allowance of some £6,000

Then, someone on £36,000 (the highest income to still get 20% tax) pays £6,000 on their marginal £30,000

Someone on £66,000 (assuming a flat 20% rate) would pay £12,000 on their marginal £60,000 - twice the salary (roughly) and twice the tax - Fair enough

But it's not like that

The £66,000 earner pays 40% on the final £30,000 - that's £12,000 tax. Making a total annual tax bill of £18,000

Twice the salary - THREE TIMES the tax

It's hard to see that as "fair" in any sense of the word - unless fair means "you earn more than me so I'm going to make sure you pay much more tax than me"

My anger at this reached a head when I was made redundant (at 50) last year and discovered that I ended up paying 40% tax on most of my redundancy payment - That felt VERY fair believe me

[Skyline D]

That's a different debate though (and certainly easier in some parts of the country than others). You can argue the case that the tax free allowance is too low if you like. Its not the same debate as to whether or not it's fair for those who earn an awful lot to contribute a greater share of it to the taxman than those who don't.

[New Judge]

No, it's not the same argument I quite agree. But I did not raise it:

"Tax free allowances allow all to keep enough for basic needs free of tax - same for everyone"

They do no such thing.