Income tax

  1. Tax rises considered to pay for growing care costs in Wales

    Social care costs graph
    Image caption: Predicted cost of adult social care (£bn in Wales)

    Tax rises to cover the cost of caring for elderly and disabled people are being considered by the Welsh Government.

    The money raised could be spent on abolishing care fees or on a pay rise for care workers.

    A consultation on possible reforms to social care is due to start this summer.

    Health Minister Vaughan Gething is set to call for "honesty" and a "grown-up debate" about increasing care costs.

    But the idea of raising income tax is likely to prove contentious in the run-up to the Welsh elections next year.

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  2. Lib Dems detail the 'beauty' of income tax rises

    BBC Radio 5 Live

    Sir Ed Davey

    One of the Lib Dems' pledges is to raise income tax by 1p in the pound - but could someone who earns £20,000 a year afford this?

    "What they can't afford is a health service that's not there when they need it," says Sir Ed Davey (pictured). "What they can't afford is a social care system which is on its knees."

    "The more that you earn - that is one of the beauties of income tax - the more you pay so if you're on a lower income you pay less."

  3. Top earners contribute 25% of all income tax

    Today Programme

    BBC Radio 4

    Bank notes

    The UK's top earners pay just over a quarter of all income tax, figures have shown.

    There are 310,000 people in the top 1% of taxpayers, with only 11% of them being women.

    But this group plays a crucial role in the economy, as Paul Johnson of the Institute For Fiscal Studies explains.

    He told Today: "They have about 12% of all income so have got a lot of money, but they are also rather important to the rest of us, as they pay an awful lot of money into the exchequer.

    "They are paying far more than 30 or 40 years ago because they have got far more money than they had in the past, although compared with 2008 the figures have not changed very much, as incomes have not grown that much over that period.".