Flashcard Definition
Relative income level after deducting for taxes (like Income Tax or National Insurance) and adding transfer spending (like Universal Credit).
Block Type
Flashcard
If a rich individual pays more in taxes than they receive in government transfers, they have a negative net position. Meanwhile, poorer households which receive more in government transfers than they pay in taxes have a positive net position.
Related content:
Effects of taxes and benefits on UK household income - Office for National Statistics
In the financial year ending (FYE) 2021, which covered the first year of the coronavirus pandemic, the median household income in the UK before taxes and benefits was £34,000, increasing to £37,600 after taxes and benefits.
www.ons.gov.uk