What was the income tax rate in the 1960s?

fatbadger2

This is quite a random request. Does anyone know what the income tax rates were in the 60s? I specifically would like to know why the Beatles has a good moan about "1 me 19 for you". They are refering to the 95% supertax, that much I know. But wouldn't they have had a personal allowance of several thousand? And while I'm in a beatle knocking mood, why did John Lennon sing about how awful people could be to each other an then !!!!!! off to the most dog eat dog richest country in the world?

Tax rates?

Cheers!

relaxtwotribes

I'll have a guess that the standard rate of income tax was 35% and the highest rate of income tax was 83% on top of which there was an investment income surcharge of 15%, producing a tax rate of 98%.

Who were the Beatles?

antrobus

relaxtwotribes wrote: »

Who were the Beatles?

Some kind of popular music 'beat combo', I understand.

John_Pierpoint

At one stage income tax on "unearned" income went over 100%. In effect making it a small wealth tax.

Mick Jagger went to live in France if I remember correctly.

It was also about that time that Capital Gains Tax was invented together with Corporation Tax (but without the concept of advance corporation tax counting as income tax on dividends, meaning that wealthy capitalists were paying double taxation on their profits when paid out as divi's)

On the other side of the coin the cost of borrowing, from overdraft to mortgage, could be claimed against tax - the house price bubble was born as the tax man paid a lot towards rich people's houses.

Over all the tax take, in terms of GDP, was a lot lower in a socialist paradise - only "luxuries" paid sales tax (called
purchase tax) and all the other stealth taxes had yet to be invented.

http://www.hmrc.gov.uk/history/taxhis7.htm

Don't forget income pays two taxes the other one is called National Insurance.