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Thousands of workers in Britain find themselves trapped in a terrifying tax trap, where they are subjected to a 62% tax on every pound once their annual income exceeds £100,000, prompting many to deliberately reduce their salaries.

Stifling Impact on Families

Parents whose income exceeds this threshold face tax rates exceeding 100% due to the loss of financial benefits that help families care for children, making income increases incredibly costly.

How Do They Avoid the Trap?

Many employees are opting to reduce their working hours or decline promotions, but the most common method is funneling money into retirement plans to reduce taxable income.

Threat to the Economy and Future

Economists warn that this behavior could lead to a wave of early retirements, which may weaken the British economy and reduce productivity in the long term.

Are There Solutions?

Despite calls for tax system reform, the British government faces significant financial challenges that hinder addressing this issue at present, keeping the tax trap ongoing.