Historical tax rates

[Dr Jekyll]

I know that during the 70's there was a top tax rate of 83% or thereabouts, but can anyone out there remember what the threshold was? Was it millionares only or did it hit the merely well paid, top doctors, lawyers etc?

[jazzybee]

My Dad left the country in '78 or '79 because of this. He says that everything over £100k per year was taxed at 98%. He liquidated his business and left - said he was not going to work his fingers to the bones for the government. Looking back, he probably should have stayed, he lost tonnes of money in Pakistan, then we moved to the US and did the same. Only started making money again when he came back to the UK in the mid 80's

ETA-looking up facts, and my Dad may have exaggerated, I can't find evidence of over 83% right now

Edited by jazzybee on Wednesday 25th June 18:11

[jazzybee]

http://www.ifs.org.uk/bns/bn09.pdf  looks like there are some figures in this document, but only in real terms, and does not cover the range of upper bands in the late 70's. It also does say that the top band for unearned income (don't know what that means) was 98%.

[Dr Jekyll]

I think at one time there was a 15% surcharge on investment income. SO if you hit the 83% threshold and then got another £100 from an investment, they govt ended up getting £98 of it. Or as the govt would no doubt put it, you got 2% of their income.

[Eric Mc]

Unearned income usually means "investment income" such as interest, dividends and most types of rent.

[edb49]

Is there *anywhere* worldwide that has such a tax rate currently? How does their economy do???

[JohnP68]

My understanding is that "unearned income" refers to all income paid to civil servants