According to the Adam Smith Institute
Taxpayers worked 154 days this year to pay their taxes, four days longer than 2015
- Tax Freedom day falls four days later than it did in 2015
- Brits work 154 days of the year solely to pay taxes; every day from 1st January to 2nd June
- Tax receipts projected to be 42.27% of net national income this year
- Government needs to cut spending and keep tax reform a priority
- Adam Smith Institute calling on government to raise National Insurance Threshold to help lowest paid in society
This is first time in 15 years that Tax Freedom Day has moved into June!
Whilst net national income has increased by £34.6bn from 2015, 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.
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.”
Tax Freedom Day is designed to reveal to the public how much they really pay out in taxes, which Britain’s lengthy tax code can often obscure. ASI calculations include direct taxes like income tax and national insurance, as well as indirect taxes like VAT and corporation tax.