Tory Tax Rises

Tory Tax Bombshells!

This Government says they are the party of reduced taxes but their record says otherwise – indirect taxation has risen hugely- and they won’t clarify their tax policy after the election.

 

Hammond’s tax burden headache

Extract from the BBC link above:

Research by the TayPayers’ Alliance says that the tax burden (that’s all taxes paid by individuals and businesses as a proportion of gross domestic product) was at its highest last year since 1981. That’s because taxes have risen as the economy has stagnated.
The figure is set to rise further, and by 2020 tax as a proportion of Britain’s economic wealth will reach its highest level since 1969.
Stamp duty on house purchases, increases in VAT, increases in taxes for higher rate payers, cuts in tax reliefs on pension allowances and rises in insurance premiums tax have pushed the burden up to 34%.By increasing the tax threshold – the point at which employees start paying tax – the government says it has cut taxes for millions.
Wiggle room
But income tax is not the only way we contribute to the state. “The government’s claims to have been reducing taxes simply doesn’t stand up to scrutiny,” said Alex Wild, research director at the TaxPayers’ Alliance.”Granted, some have been cut, but others have been raised and new ones introduced with the net result being that last year’s tax burden was the highest for 35 years.”For the average household, the amount of their income they hand over in tax has increased since 2010 and it’s deeply concerning that the government sees the need for ‘flexibility’ to increase the tax take further when it’s already set to reach levels unseen for half a century.
Our attitude to taxation has changed with the influence of Thatcherism, with over the years since 1988, a decrease in income tax and in the burden falling on those most able to an increase in indirect taxation so that those less wealthy pay a disproportionate amount of their income on VAT etc. We expect our public services to be fully funded but do not accept we should pay for them!
 According to Wikipedia:

 

The highest rate of income tax peaked in the Second World War at 99.25 percent. It was slightly reduced after the war and was around 97.5 percent (nineteen shillings and sixpence in the pound) through the 1950s and 60s.

 Tax revenues as a percentage of GDP for the UK in comparison to the OECD and the EU 15. In 1971. the top-rate of income tax on earned income was cut to 75 percent. A surcharge of 15 percent on investment income kept the top rate on that income at 90 percent. In 1974 this cut was partly reversed, and the top rate on earned income raised to 83 percent. With the investment income surcharge this raised the top rate on investment income to 98 percent, the highest permanent rate since the war. This applied to incomes over £20,000 (equivalent to £187,970 in 2015 terms),[3]. In 1974, as many as 750,000 people were liable to pay the top-rate of income tax.[8] Margaret Thatcher, who favoured indirect taxation, reduced personal income tax rates during the 1980s.[9] In the first budget after her election victory in 1979, the top rate was reduced from 83percent to 60 percent and the basic rate from 33 percent to 30 percent.[10] The basic rate was also cut for three successive budgets, to 29 percent in the 1986 budget, 27 percent in 1987 and to 25 percent in 1988.[11] The top rate of income tax was cut to 40 percent in the 1988 budget.The investment income surcharge was abolished in 1985.”

CJ

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