BRITISH PAYING $13.10 AN HOUR IN TAXES FOR EVERY HOUR WORKED
May 29, 2007
Taxpayers had £6.60 (about U.S. $13.10) taken from them for every hour they worked last year, more than £1 above what the Treasury was taking five years ago, and an amount that is higher than the minimum wage, Treasury statistics reveal.
The latest rise has brought taxation in Britain to its highest burden ever, as most individual taxes have seen an increase:
- The Council tax has doubled over the period, and the amount taken in inheritance tax has rocketed as Chancellor Gordon Brown has failed to raise the threshold with house prices.
- Stamp duty and National Insurance bills have loaded the biggest extra burden on to the middle classes.
The Institute of Fiscal Studies calculated this year that as a result of tax changes over the last 10 years:
- People earning £28,000 (about U.S. $55,597) a year paid an extra £630 (about U.S. $1,250) in tax.
- For those earning £34,000 (about U.S. $67,511) a year paid an extra £1,150 (about U.S. $2,283).
- For those earning £41,000 (about U.S. $81,410) a year paid £1,800 (about U.S. $3,574).
- And for those earning £67,000 (about U.S. $133,089) a year paid £4,000 (about U.S. $7,945).
Meanwhile, Friday June 1 marks this year's Tax Freedom Day, the date from which workers are deemed to start earning for themselves, having handed over every pound earned so far this year in tax. When Labor came to power 10 years ago it fell on May 27, said the Adam Smith Institute.
Source: Alison Little, "How You Pay £6.60 An Hour In Tax" Daily Express, May 29, 2007.
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