Does a city broker actually pay a lower less effective tax rate than a cleaner? No.

“It’s crazy that the person cleaning an office pays a higher effective rate of tax that the city broker” is what Paul Novak told the Trades Union Congress.

It would be crazy, if it weren’t complete nonsense.

The average cleaner is paid around £26k per year, with tax and NICs of £3,759. That’s an effective tax rate of 14.4%.

A city broker might earn £200k, with tax and NICs of £77,186 giving an effective tax rate of 38.6%.

It’s not even close.

Wanting to tax the rich more is a legitimate position to take. But there’s no need to make up facts to support this argument.

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