Most people think the UK has a progressive tax system, but huge cuts to the corporation tax since 2010 alongside rises in VAT mean the system is becoming more regressive
Story Transcript
Speaker : Before the election in 2015, David Cameron promised not to raise VAT because it’s a regressive tax the hits the poorest the hardest. However, the Conservatives have been the only party to ever raise VAT, doubling it since they introduced it in 1973. While Labor are the only party to leave office having lowered it. Meanwhile, the Conservative government has cut taxes for the richest, like corporation tax, from 28% in 2010 to 20% in 2015. It’s projected to drop to 17% by 2020. This is regressive taxation. A progressive tax system would see the richer pay a higher percentage of their income as tax. It’s a system most people want. It creates more equality and improves standards of living for more of us. However, research has shown we think the poor pay less and the rich pay more than they really do.
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