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By John Hills

Because the past due Seventies, Britain has turn into a extra unequal society. This publication analyzes the dramatic widening of the source of revenue distribution, the expansion of poverty, and the standards that experience pushed them. It examines how executive spending and the taxes that pay for it have an effect on people's earning, why they take the kinds they do, what we predict of them, how issues have replaced given that New Labour got here to strength in 1997, and the long run pressures that any executive will face because the inhabitants a long time.

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Extra resources for Inequality and the State

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On the standard methodology, 23 per cent of the non-disabled group were poor but 35 per cent of the disabled group. If we exclude benefits explicitly designed to compensate for extra costs from household income, the poverty rate for disabled adults rises to over 40 per cent. However, Zaidi and Burchardt's analysis suggests that such benefits do not fully achieve the objective of compensating for such costs. Using other indicators of standard of living, they calculate the additional costs implied by different reported levels of disability.

Ought to be paid only five times as much. 5 to one, but ought to be just over six to one. The preferred ratio did grow over the period but, as we shall see in Chapter 4, by only a fraction of the actual increase in the gap between high and low pay. As we saw at the start of the chapter, people's perceptions of income distribution are not necessarily very accurate. 9 shows how much average earnings actually were (for men and women combined) in each occupation in 1999. 15 People greatly underestimate the extent of inequality between the earnings of particular occupations, but still think that the gap between rich and poor is too great.

These figures are based on tax records. Particularly when the top rates of income tax were very high indeed (over 90 per cent from the 1940s up to 1979), the very rich with good accountants would have had little trouble in converting 9 This also explains why recent falls in relative poverty have been faster when measured against 60 per cent of median income than when measured against 50 per cent of mean income. 6 are consistent in the income data used for the very top of the distribution. 6. 3 Note: Figures are based on the shares of different groups of 'tax units' (as proportions of total population of potential tax units).

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