UK NEWS
THE BROWN LEGACY: 10P ON INCOME TAX
BIG SQUEEZE: Gordon Brown
By Macer Hall, Political Editor
HOUSEHOLDS are being squeezed out of an extra £1,600 a year by Gordon Brown’s tax rises, new figures revealed last night.
The crippling sum is the equivalent of an extra 10p in the pound on the basic rate of income tax.
It means the average British family is paying £30 a week more into Treasury coffers than a decade ago.
Experts reckon more than two-thirds of the rise results from the Chancellor’s stealthy manipulation of tax thresholds to maximise his cash haul.
Critics last night warned that hard-pressed taxpayers can expect to be hammered even harder by thumping tax rises once Mr Brown – branded the “big clunking fist” by Tony Blair becomes Prime Minister at the end of this month.
Millions of families are already struggling to make ends meet with rising interest rates and higher than expected consumer price rises.
|
Gordon Brown has hit millions of families with ever-increasing stealth taxes
|
Shadow Treasury Chief Secretary Theresa Villiers
|
Full details of the eye-watering tax rises under Labour were estimated by City accountants Grant Thornton on the eve of “Tax Freedom Day” today.
The date represents the theoretical point in the year when taxpayers are earning for themselves rather than for the Treasury, this year falling a full five days later than 10 years ago.
Shadow Treasury Chief Secretary Theresa Villiers said: “This research shows that in his 10 years as Chancellor Gordon Brown has hit millions of families with ever-increasing stealth taxes. Every year we’re all paying more and more money to the Chancellor and far too often the money’s wasted. How can he have spent so much and achieved so little?”
Grant Thornton’s analysis of the rise in the tax burden under Labour showed rises for the average taxpayer equivalent to 10p on the basic rate of tax.
Around 7p of that resulted from Mr Brown’s delays in raising tax thresholds in line with rising incomes, house prices and inflation, one of his key “stealth tax” tactics, described by economists as “fiscal drag”.
Francesca Lagerberg, head of Grant Thornton’s National Tax Office, said: “Silently the tax take continues upwards, with fiscal drag raking in yet more revenue year on year.”
The Grant Thornton analysis looked at the overall affect of all taxes, including income tax, national insurance, VAT, inheritance tax and fuel duty.
The figures showed that 3.5 million people in Britain were now top-rate taxpayers, a rise of 58 per cent since 1997.
And the Treasury cash haul had risen by £29billion more than if taxation had increased in line with economic growth.
Grant Thornton also pointed out that the Treasury’s official tax guidelines had increased from 4,555 to 9,973 pages since 1997. Grant Thornton tax expert Maurice Fitzpatrick, said: “An increase in the tax burden equivalent to 10p on basic rate income tax equals an increase in tax revenue of around £40billion a year, or £1,600 per UK household on average. That’s around £30 week. For some mortgage-holders this would be more than their mortgage.”
Tax Freedom Day, calculated by free-market think tank the Adam Smith Institute, has crept steadily forward under Labour. In 1996, the final full year of the last Tory government, it fell on May 26.
Dr Eamonn Butler, director of the Institute, said: “When people joke that they spend as much time working for the taxman as they do for themselves, it is very nearly true.”
Treasury officials dismissed the tax-rise allegations last night. A spokesperson said incomes had “grown strongly” since 1997 and the basis of a “fair, progressive, income tax system” was that as real income rose, the average tax people paid went up.
Last month the Daily Express revealed that Brown’s tax rises meant the average worker now paid more than £6 an hour in tax.
Video 
BROWNS LEGACY!
01.06.07, 1:20pm
Brown has been screwing the tax payer for ten years now!. This man has destroyed our pensions lost our gold reserves and built up huge public debt!. These treasury idiots are liars and the figures are heavily doctored in their favour. There are many industries that are now paying lower wages than they were ten years ago in real terms. Inflation figures are as bent as Brown TOTAL CRAP!, they do not include the things that cripple many families such as council tax! and the ever inceasing cost of Browns thieving. Can I assume the treasury are talking about their own salaries because there are thousands if not millions of people far worse off than they were before thieving Brown got into power!. The true public debpt is well over£ 1.25 trillion and rising and guess what it is our name on the invoice.
• Posted by: kenherts • Report Comment
NERO BROWN AND THE FIDDLER ON THE HOUSE
01.06.07, 11:24am
Bloody Nero couldn't fiddle like this guy!!
• Posted by: JAYDEE • Report Comment
THE BROWN LEGACY: 10P ON INCOME TAX
01.06.07, 10:18am
"You aint seen nothing yet" as the song goes !
Just watch this space over the next 2 years.
1) Government bans Smoking
2) Government funds NHS to provide Anti Smoking Pill
3) Millions take up the option and give up smoking
4) Treasury loses Billions in Tobacco Taxes
5) Treasury doesnt know which way to turn
6) Chancellor slaps more megga taxes on Petrol/Diesel/Alcohol, Income tax and Ni contributions.
7) The British Population is being bled dry
8) The rest of the EU have a damn good laugh and keep sending over all the immigrants that they can because they dont want them .
• Posted by: AnthonyGibson • Report Comment
To view all 'Have Your Say' comments, click this button...