The TaxPayers’ Alliance (TPA) shows that the average family pays £656,000 in tax over their lifetime.
After years of the state overspending and misusing our money we now have a greater idea of how far this legacy cripples the finances of British families. The TPA’s latest research shows the total amount of direct and indirect tax that households will pay over their working lifetimes and in retirement. Based on the current level of taxes applying over a working lifetime of 40 years and 15 years of retirement the key findings of their research are:
- The average household will pay over their lifetime a total of £250,000 in Income Tax and £101,000 in VAT;
- Poorest households are hit hardest by VAT and Council Tax. A household in the lowest quintile pays £57,000 in VAT and £55,000 in Council Tax over a lifetime;
- An average household in the lowest income quintile will pay £235,000 in direct and indirect taxes;
- An average household in the second income quintile will pay over £392,000 in direct and indirect taxes;
- An average household in the third income quintile will pay over £556,000 in direct and indirect taxes;
- An average household in the fourth income quintile will pay over £755,000 in direct and indirect taxes; and
- The four most burdensome individual taxes over a lifetime are Income Tax, VAT, employee National Insurance contributions and Council Tax.
Matthew Sinclair, Director TaxPayers’ Alliance said:
Households in the UK now pay an incredible amount in tax over a lifetime, handing over a hefty slice of their income. The VAT hike has added to the cost of living and many taxpayers are really feeling the pinch with little prospect of improvement on the horizon. The Chancellor needs to deliver a tax cut in the Budget, to ease the burden and help the economy to grow. Simpler, fairer taxes can decrease the lifetime tax bill for households and leave everyone with more of their own money, so they can decide how to spend it.
When the poor are hit so heavily through taxation it is impossible to view current levels of taxation as fair and just. That is why we need lower, simpler taxes.
Last year, the Government delivered the biggest single increase of personal allowances in income tax history. The amount that can be earned before income tax rose from £6,475 to £7,475 in April 2011, which took 880,000 people out of the income tax system altogether. This year, the Government plans to increase it to £8,105. However, we need to go further.
I repeat the call that I made recently in correspondence with constituents:
For far too long, Governments have got away with making promises which could only be funded by excessively high taxes, immoral borrowing and damaging inflation. No other organisation would be allowed to get away with it and neither should government. More than that, I want to see lower taxes across the board. As a Conservative, I believe that less government, less tax, more freedom and more responsibility are elements of the right recipe to create a better society for everyone. I want radical change.
Tags: Conservatism, Income Tax, National Insurance, Statism, Tax, TaxPayers' Alliance
The TPA are in general an excellent organisation, though I dont always agree with some of their statements.
Interesting to note that the average figure combined of £351000 would fund 14 households for a year at the maximum proposed state benefits cap. Until this week, I had no idea that some households in the UK were actually getting that level of support ( and more ) from the state……
I also think its about time we combined NI and Income Tax into one easy single payment, the cost of administering both is a waste of public expenditure.
Just to add to my points above, and maybe incurring a risk of being slightly politically incorrect, the link below popped up just now on Yahoo news…
Now pardon me for being somewhat cynical and I m sure the DLA benefit is well worthy, but the guy states he recieves this for amongst other things bad eyesight. He also receives a car under a government scheme…..putting those 2 together seems a higher than average risk of an accident??