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Record Tax Burden 23 December 2006

Posted by David in Labour.
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Britain is suffering the highest tax burden since records started according to the Office for National Statistics.

The Telegraph: The ONS said that taxes on income are now absorbing £23.60 of every £100 earned. This tax level is before other indirect and stealth taxes, such as council tax and stamp duty, are taken into account. The figure shows how the amount taken by the Government has been ratcheted up since 1997. When Labour came to power, the level of taxes on income was at a low of 18.7 per cent. The tax burden rose by 3.1 per cent in the three months to October alone, and has risen by 9.2 per cent since the start of the year – the biggest leap since 1998. With the Chancellor already having raised a series of indirect taxes – including air passenger duty earlier this month – the effect on households’ finances has been severe. Exacerbating this, some households are having to contend with inflation rates of up to 9 per cent – as shown by research produced for The Daily Telegraph. The growth in families’ disposable incomes – after all taxes, mortgages and inflation have been taken into account – has dropped to a two-year low. It rose by only 0.2 per cent in the third quarter of the year, the ONS said. The poor figures are the direct effect of previous tax increases, and of fiscal drag, in which the Chancellor fails to raise tax-free allowances at the same rate as wage inflation, experts said. The OECD highlighted a stark comparison between the experience of British citizens and their counterparts overseas. In most other developed nations taxes are falling. The Paris-based institution said that since 1997 the tax burden in Britain, which includes business taxes as well as personal ones, has soared. It has calculated that, by 2008, the share of national income being eaten up by taxes under Labour will have increased by 3.8 per cent. The OECD said that in the wider industrialised world, the tax burden had decreased by 0.3 per cent between the start of 1997 and the end of 2008, based on governments’ budget plans. In Germany, usually regarded as a high tax country, taxes have fallen by 2.4 per cent over that period. Consumer groups and business experts have voiced concern that Britain has gone from being a low-tax economy to a high-tax economy. They fear the country has become less attractive to employers, and warn that high taxes are driving many Britons abroad. With debt levels at an all time high of near £1,300 billion, households’ finances are more pressed than ever. The squeeze has contributed to a record rise in bankruptcies and insolvencies. George Osborne, the shadow chancellor, said: “Gordon Brown has relentlessly piled taxes on to hard-pressed families. That is why we have the double blow this Christmas of a less competitive economy and falling living standards.”

When will people learn: dogs go bark, cows go moo, and Labour raises taxes!

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Comments»

1. Cassilis - 24 December 2006

I’m no fan of Labour’s approach to taxation but it’s more complicated than it first appears.

2. julieismetoo - 16 February 2007

Hi there 

By the way, I love that too!  Where did you get that at?  

See you soon! Girly Girl 

see how I make free money with paid online surveys


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