The Taxpayers’ Alliance are calling for a much needed tax cut to help boost the economy.
Treasury plans keep Britain’s historic-high tax burden at 49-year high plateau for next five years.
Overall government revenues this year are at a 32-year high, at 37 per cent of GDP.
Figures released by the TPA reveal the UK’s tax burden has reached a 50-year high, and likely to remain for the forceable future.
This comes as families struggle to pay for Christmas, with reliance on food banks being labelled an ‘epidemic’ in Liverpool.
Covered by the TPA in Jun, ’18, statistics shown the bottom 10% of earners were handing over nearly half of their income in taxation, of which 43 per cent of this is made up of VAT and Council Tax.
This is in stark contrast to the United States, which has reduced corporation tax from 35% to 21%, the biggest corporate tax cut in U.S history, beating Ronald Reagan who lowered the rate from 46% to 34%.
The BoE and Chancellor Phillip Hammond have been extremely vocal about the impacts of Brexit on the economy, but interestingly a string of new taxes have been proposed, all with the potential to have a Kamikaze impact on the economy.
These include a tax on meat products, digital tax on tech giants like Amazon and Uber, a tax on plastic, and an increase in corporation tax.
Ryan Bourne of City A.M recently said: “..playing corporate tax whack-a-mole based on hunches about who pays “too little” will not just upset the Americans, but worsen our broader economic health.”
This year, the government expects to raise £787 billion in total, equivalent to approximately £29,000 per household.
These receipts will partly finance its £813 billion of spending, leaving a deficit of £26 billion. Some of the receipts are interest payments, dividends and profits from trading activities, but most are taxes.
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “For all the talk of increasing taxes to help the poorest the truth is that the steady growth of the tax burden often hits precisely those families the hardest, leaving them with less money to pay for the essentials.
“The highest tax burden in fifty years is still not enough for socialists, of course, whose answer to everything is to either increase borrowing or taxes.”
“Other countries like the US and Australia are cutting taxes and we should be looking to replicate that to boost the economy and ease the burden on the most hard-up taxpayers.”