British paying R94.70 an hour in taxes for every hour worked

Taxpayers had £6.60 (almost R94.70) 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 R402,000) a year paid an extra £630 (about R9,000) in tax.

For those earning £34,000 (about R488,000) a year paid an extra £1,150 (about R16,500).

For those earning £41,000 (about R588,350) a year paid an extra £1,800 (about R25,800).

And for those earning £67,000 (about R961,450) a year paid an extra £4,000 (about R57,400).

Meanwhile, Friday June 1 marks this year's Tax Freedom Day in the UK, 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 Labour 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.

For text: http://www.express.co.uk/posts/view/8225/How+you+pay+%C2%A36.60+an+hour+in+tax

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FMF Policy Bulletin/ 05 June 2007