When we examine the net impact of taxes and benefits we can see the real impact of the welfare system on poverty.
Most of the benefits paid to the poor are repaid in taxes. The net effect of the tax and benefit system is set out in this graphic. It shows that the current welfare system does very little to improve the incomes of the poorest.
The publisher is The Centre for Welfare Reform.
Graphic on Income Adjustment © Simon Duffy 2012.
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