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U.K. Urged to Overhaul Tax System That Favors Highest-Earning 1%

  • IFS calls for alignment of tax rates across all income sources
  • Current system is ‘unfair and inefficient,” harms well-being

The U.K. tax system continues to favor the 500,000 highest-earning people in the country and should be overhauled, according to the Institute for Fiscal Studies. 

The top 1% enjoy “preferential” rates over wage earners because they get more of their income from more lightly taxed sources, the influential think tank said in a report published Thursday.