Discuss, with relevant examples, the different levels of income and Essay

Discuss, with relevant examples, the different levels of income and expenditure that a typical UK individual is likely to ex - Essay Example Its quality of education is high and the literacy levels are among the highest in the world. Its learning institutions, especially the universities, rank highly in global ratings. The income levels in the United Kingdom are above the global average (Cordner, Das, and Cordner, 2010, p. 76). A typical UK citizen is thus destined to experience many levels of income and expenditures due to the nation’s diverse nature. Income The average household net-adjusted disposable income on the global scale is $22,387 per year. United Kingdom’s average citizen outdoes this and has an average annual income of $26,552. This is according to the Organisation for Economic Co-operation and development (OECD) survey carried out in 2010. The UK also has an average household wealth of $59,923 according to the OECD survey. This also is above the average household wealth of $36,238 for OECD members. The debt level though was $73,039 in 2010 according to a national financial education charity cal led Credit Action. This includes all debts mortgage and credit card debt. Also, the OECD estimates that the income for the top 20 per cent of earners is $55,138 per year. This greatly contrasts with the bottom 20 per percent of earners who earn $9,556 annually. The income bracket age with the highest earnings is from thirty five to forty nine years. The lowest earning age bracket is from fifteen to nineteen years (Clark, 2007, p. 88). The professional and managerial jobs earn the highest incomes. In contrast, elementary jobs earn the least incomes across the board. Of the total working population, 7 per cent have contracts lasting six months or less. 75 per cent of the men and 65 per cent of the women have jobs in this diverse economy. With more than 70 per cent of the working age bracket employed, this is a fairly good condition compared to other nations. It means that few people are below the poverty line and the living conditions are quite luxurious. Although there exists a big g ap between the high and low income earners, access to basic needs is almost assured for all levels of income. This has ensured a relatively stable economy. Expenditure Taxation Since all governments the world over depend on taxation in funding public projects to avail social amenities to their citizens, great interest is generated by this subject (Black, 2010, p. 89). The United Kingdom, being no exception, has an elaborate taxation scheme to see to the availability of public goods among them roads, hospitals and educational facilities. The typical UK citizen has a number of taxes they pay during their lifetime. A few of the taxes are personal taxes, business taxes and sales taxes. All these taxes serve the sole purpose of contributing to the national basket. Personal taxes, among them income tax, council and inheritance taxes, are directly levied to each citizen. Income taxes to a typical United Kingdom citizen include taxes levied on salaries, bonuses, commissions and overseas all owances. The basic income rate, covering incomes from 0.00 British pounds to 35,000 British pounds, charged 20 per cent income tax (Becker, 2009, p. 45). The next higher tax bracket, covering incomes from 35,001 British pounds to 150,000 British pound