[DanaC]

That cartoon is brillliant V

merc, I don't know exactly how wealthy and poor should be defined. But in the UK we have a recognised 'poverty line'. If you're income is at or below that line, you are officially 'poor'.

This is the official definition of poor:

Individuals, families and groups in the population can be said to be in poverty when they lack the resources to obtain the types of diet, participate in the activities, and have the living conditions and amenities which are customary, or are at least widely encouraged and approved, in the societies in which they belong

The UK government recognises the importance of a relative approach to poverty. It currently uses a variety of proxies as measures. The most commonly used measure (the ‘headline’ measure usually reported) treats poverty incomes as a percentage of median disposable income.

The UK government’s poverty line is where household income is below 60 per cent of the median UK household income, before and after housing costs have been paid. [source]

The median household income is the amount where half of all households have incomes more than this and half have less. The main poverty measure counts the number of people living in low-income households, below 60% of the median. Below this amount a household and its members are described as living in income poverty. The poverty line is adjusted to take into account how expenditure needs differ between people and types of households (equivalisation).

This is not the only poverty measure the government uses. The Child Poverty Act 2010 requires the government to report to Parliament on progress towards child poverty reduction targets for 2020. The Act states that the number of children living in households in poverty should be measured in four different ways
■ Income poverty alone: households with incomes below 60% median household incomes;
■ A combined measure of low income and deprivation: household income poverty below 70% median household incomes, combined with a measure of material deprivation;
■ A constant measure holding the purchasing power of incomes constant: households with incomes below the cash value in real terms of the 60% median level in 2010.
■ A persistent measure of income poverty: households whose income was below the 60% median level in three of the previous four years.

This then is what qualifies as 'poor' in my country:

Single person, no children household weekly income of £124

Couple with no children - £214

Lone parent with two children (aged 5 and 14) - £256

Couple with two children (aged 5 and 14) - £346

http://www.cpag.org.uk/povertyfacts/index.htm



So, what is 'wealthy'?

Well, in our tax codes, those with earnings above £150,000 per annum are in the highest tax bracket. For tax purposes they are wealthy. There are, however, gradations of wealth, and we also recognise the 'superwealthy'.

Personally, I don't consider £150k per anum 'wealthy' unless is is coupled with a personal 'fortune' and valuable property.

But that's one of the problems really. because the 'wealthy' seldom count their wealth by earnings alone. Unlike the 'poor'. their annual earnings represent only a portion of their actual income/wealth. For the poor, there are only wages. And those wages are taxed as they are earned, and again as they are spent.

For the affluent, with property, investments, shares and a bank balance with lots of zeros, tax works very differently. The money they earn and which is taxed when they earn and when they spend is not the whole of their finances. And the bulk of their wealth is taxed very differently from annual income.

The tax codes recognise poor and rich. My government has cut taxes to the highest earners, whilst stripping away benefits from people living below, on, and just above the official poverty line.