Author Archives: Donald McIntosh

Is the tax system shafting Gen Z and Millennials?

By Donald McIntosh | Mon 31st March 2025 - 5:45 pm

The tax system in the UK exacerbates age inequality and puts an increasingly unsustainable burden on Gen Z and Millennials.

A millionaire like Rishi Sunak pays an effective rate of 23% tax on his £2.2m income. And yet, someone in their late 20’s earning, say, £55,000 will pay 51% of every extra £ they earn (40% tax + 2% NI + 9% Student Loans). And we wonder why younger voters are disengaged and demographic time bombs arise.

In percentage terms, the tax burden rises, falls hardest on the struggling middle income, and then reduces, as wealth becomes sufficient to afford tax advisors. Once a level of wealth is achieved, the UK has some of the most generous tax relief schemes in the world. These need pruning.