See British Tax: Families with one bread winner pay highest amount | Mail Online
The UK and Ireland levy the highest effective top tax rates in the OECD countries on typical families with one working parent earning 75% of the average wage and one parent staying at home with two children. The marginal effective tax rate including loss of benefits,not just the statutory tax rate alone, is 73% in the UK and 64% in Ireland. So if the parent at home takes a job,these super tax rates which even billionaires don't pay,apply.In contrast,France's effective rate is a bit over 20%,suggesting that financially motivated Irish families with one working parent should emigrate immediately to France!
Such high effective tax rate are hostile to families with young children. What is the point of the stay at home parent taking up work unless the pay compensates for the 64% rate? Only the highest paid jobs would compensate but few stay at home parents would qualify for them. Was such a tax rate designed to reduce the number of people looking for work? Or did it result from a socialist attitude that families with two parents working are not deserving of help with the huge expenses of child rearing? Or was it simply typical copycatting of British tax legislation?