BRITISH TAXPAYERS have worked a gruelling 154 days this year just to pay their taxes, four days more than in 2015.
According to research by Think Tank the Adam Smith Institute (ASI), today is the first day of the year when Britons stop working to pay their taxes and start earning for themselves.
Dubbed ‘Tax Freedom Day’, this year has seen the date creeping into June for the first time in fifteen years, a red flag that Britons’ tax burden is moving in the wrong direction, the Think Tank said.
It is calling on the Government to cut spending and keep tax reform a priority.
Research by the Institute showed that whilst net national income has increased by £34.6bn from 2015, the government has actually gobbled up £35.4bn more in taxes, meaning the government has actually left Britons £1bn worse off than last year, a reminder that tax reform must remain a priority.
The ASI is calling on the government to alleviate the pressure on the lowest earners in society and raise the threshold of National Insurance Contributions from £8,060 up to £11,000, the same level as income tax.
Director of the Adam Smith Institute, Dr Eamonn Butler, said: “The Treasury hates Tax Freedom Day because they don’t want us to know how much tax we really pay. They conceal the tax burden with stealth taxes that we don’t even realise we’re paying. But it’s shocking that the government takes over two-fifths of the country’s earnings – and then borrows more. We work longer for the government than mediaeval serfs had to work for their Lords!
“It is absurd that people on the minimum wage are liable for National Insurance Contributions, which raise their cost to employers and make it harder to move from benefits into work. The poor are also worst hit by regressive taxes like excise duties on what they buy.”