Therefore, a 5% increase in Income Tax in the UK would yield £26.6 billion per annum.
This means that if we in the UK decided to accept a 5% increase in the rate of Income Tax we could provide the funds required to eradicate extreme poverty in this generation.
Meeting the shortfall
The shortfall between what is needed to end extreme poverty by 2025 and what is currently given, is £26.45 billion per annum.
According to the 2008 HM Treasury Report, ‘Tax ready reckoner and tax reliefs,’ a 1% increase in Income Tax in the UK would yield £5.32 billion in 2009/10.
Therefore, a 5% increase in Income Tax in the UK would yield £26.6 billion per annum.
This means that if we in the UK decided to accept a 5% increase in the rate of Income Tax we could provide the funds required to eradicate extreme poverty in this generation.