Interesting number

Since 1997, the Government\’s tax take has risen from 9.6 per cent of gross household income to 12.1 per cent.

And there are those who claim that taxes haven\’t risen.

Along with stealth tax the trick has been fiscal drag of course. By not upgrading tax allowances even in line with inflation, let alone the rise in earnings, more and more people have been pulled into the tax net.

8 thoughts on “Interesting number”

  1. Tim! This is a survey by uSwitch, whose previous efforts have been ludicrously inaccurate and biased. We’ve discussed them here. I’m not saying taxes haven’t risen just this laughable organisation is not worth bothering with (surely there are % of GDP figures that answer this conclusively)

  2. “(surely there are % of GDP figures that answer this conclusively)”

    Not when talking about household incomes.

  3. Gosh, I wish taxes did account for 12.1 per cent of my gross household income….I’d be a lot better off.

    Council tax alone takes 10 per cent.

  4. Kay Tie, Tim’s talking about overall taxes, not on households. And there are figures for disposable income, aren’t there? As Geoff points out one knows there is clearly something terribly wrong with Uswitch’s figures without doing any background research…

  5. “Tim’s talking about overall taxes, not on households.”

    Ah I see. It’s a bit of a rubbish measure, then, isn’t it?

    I have nothing but praise for uSwitch, by the way: they rescued me from British Gas. I can forgive a lot for that deed.

  6. Eh? Okay, i’ll ask the dumb question. How can the Government’s tax of gross household income be 12.1 per cent when income tax alone exceeds that figure?

    Tim adds: I don’tbelieve the figures either, but the explanation for your question is that there are personal allowances. You don’t start paying tax with your first pound. Thus averagetax rates are going to be below marginal tax rates.

  7. If you don’t believe the figure, why do you think it is interesting and proof that taxes have risen?

    Tim adds: perhaps because even people like Matthew agree with me: “I’m not saying taxes haven’t risen”

Leave a Reply

Your email address will not be published. Required fields are marked *