Today is Tax Freedom Day

It's here at last. Yes, today is Tax Freedom Day - that wonderful point in the year when the average taxpayer has finally earned enough to cover all their taxes and at last can start earning for themselves.

It may come as a shock that the average UK resident has spent the last 155 days working solely to support government expenditures, but that is the reality of it. More than two-fifths of an average earner's wages is taken from them in taxes. So when people joke that they spend as much time working for the taxman as they do for themselves, it is very nearly true.

Of course, it wasn't always like this. When Gordon Brown became chancellor in 1997, Tax Freedom Day was May 26 – a whole week earlier. And if you go back to 1965, Tax Freedom Day came on April 27!

Unfortunately, the true picture could be even worse than our figures suggest. Last year Tax Freedom Day actually came three days later than forecast, because the economy grew more slowly than the government expected. The signs are that 2008 could be no different. And if government borrowing is factored in, Tax Freedom Day does not come until June 14.

Government spending will reach £600bn in 2008. That's £10,000 for every man, woman and child in the UK – and twice as much as when Gordon Brown became Chancellor. If he had only raised public spending in line with inflation, he could have abolished income tax, corporation tax, capital gains tax and inheritance tax by now – leaving the taxpayer some £200bn better off. Something to think about, perhaps...

Anyway, a Happy Tax Freedom Day to you all!

what about PFI?
written by Cityunslicker, June 02, 2008

if this was added to the books surely another 10 days or so would be added as well.....

...
written by Tommy, June 02, 2008

Have you included VAT, fuel tax etc? If not you're letting Brown off the hook.

Tax debt day
written by SirLancelot, June 02, 2008

TFD is a good idea but my gut instinct is that "ät least thats behind me now". You should indeed announce the reverse Tax Debt Day - i.e. the day in the year AFTER which everything you earn till Jan 1st goes to the Government. Same concept but much more dispiriting since it is a debt you still owe and therefore much more psychologically effective.

Maggie - the era of tax and spend
written by e-man, June 18, 2008

What I alway find facinating is that Maggie, for all the tough talk actually spent more of the UK budget on public services and those before or after her. This includes the lefties of the 1970s.
So the simple images that we have of Tories being the party of small government, and labour being care free and tax and spend is actually quite misleading. ASI, please could you post this data graphically, simple line chart, perhaps shaded by PM or chancellor in charge.
1965 27 April 1987 5 June
1966 4 May 1988* 5 June
1967 16 May 1989 3 June
1968* 22 May 1990 3 June
1969 29 May 1991 3 June
1970 2 June 1992* 29 May
1971 25 May 1993 23 May
1972* 17 May 1994 23 May
1973 11 May 1995 26 May
1974 27 May 1996* 25 May
1975 2 June 1997 26 May
1976* 30 May 1998 28 May
1977 31 May 1999 3 June
1978 27 May 2000* 3 June
1979 29 May 2001 4 June
1980* 11 June 2002 26 May
1981 18 June 2003 23 May
1982 20 June 2004* 25 May
1983 14 June 2005 29 May
1984* 14 June 2006 3 June
1985 11 June 2007 4 June
1986 7 June 2008* 2 June

Written by Tom Clougherty
Monday, 02 June 2008
It's here at last. Yes, today is Tax Freedom Day - that wonderful point in the year when the average taxpayer has finally earned enough to cover all their taxes and at last can start earning for themselves. It may come as a shock that the average UK resident has spent the last 155 days working solely to support government expenditures, but that is the reality of it. More than two-fifths of an average earner's wages is taken from them in taxes. So when people joke that they spend as much time working for the taxman as they do for themselves, it is very nearly true. Of course, it wasn't always like this. When Gordon Brown became chancellor in 1997, Tax Freedom Day was May 26 – a whole week earlier. And if you go back to 1965, Tax Freedom Day came on April 27! Unfortunately, the true picture could be even worse than our figures suggest. Last year Tax Freedom Day actually came three days later than forecast, because the economy grew more slowly than the government expected. The signs are that 2008 could be no different. And if government borrowing is factored in, Tax Freedom Day does not come until June 14. Government spending will reach £600bn in 2008. That's £10,000 for every man, woman and child in the UK – and twice as much as when Gordon Brown became Chancellor. If he had only raised public spending in line with inflation, he could have abolished income tax, corporation tax, capital gains tax and inheritance tax by now – leaving the taxpayer some £200bn better off. Something to think about, perhaps... Anyway, a Happy Tax Freedom Day to you all! Bookmark Comments (4) Subscribe to this comment's feed what about PFI? written by Cityunslicker, June 02, 2008 if this was added to the books surely another 10 days or so would be added as well..... ... written by Tommy, June 02, 2008 Have you included VAT, fuel tax etc? If not you're letting Brown off the hook. Tax debt day written by SirLancelot, June 02, 2008 TFD is a good idea but my gut instinct is that "ät least thats behind me now". You should indeed announce the reverse Tax Debt Day - i.e. the day in the year AFTER which everything you earn till Jan 1st goes to the Government. Same concept but much more dispiriting since it is a debt you still owe and therefore much more psychologically effective. Maggie - the era of tax and spend written by e-man, June 18, 2008 What I alway find facinating is that Maggie, for all the tough talk actually spent more of the UK budget on public services and those before or after her. This includes the lefties of the 1970s. So the simple images that we have of Tories being the party of small government, and labour being care free and tax and spend is actually quite misleading. ASI, please could you post this data graphically, simple line chart, perhaps shaded by PM or chancellor in charge. 1965 27 April 1987 5 June 1966 4 May 1988* 5 June 1967 16 May 1989 3 June 1968* 22 May 1990 3 June 1969 29 May 1991 3 June 1970 2 June 1992* 29 May 1971 25 May 1993 23 May 1972* 17 May 1994 23 May 1973 11 May 1995 26 May 1974 27 May 1996* 25 May 1975 2 June 1997 26 May 1976* 30 May 1998 28 May 1977 31 May 1999 3 June 1978 27 May 2000* 3 June 1979 29 May 2001 4 June 1980* 11 June 2002 26 May 1981 18 June 2003 23 May 1982 20 June 2004* 25 May 1983 14 June 2005 29 May 1984* 14 June 2006 3 June 1985 11 June 2007 4 June 1986 7 June 2008* 2 June Write comment This content has been locked. You can no longer post any comment. Powered by Azrul's Jom Comment for Joomla!