News from Labour Matters

In the UK ‘Tax Fredom Day’ depends on your wealth

The Tax Research UK blog takes the Adam Smith Institute to task for claiming that ‘Tax Freedom Day’ is 2nd June:

“In 2006 Grant Thornton calculated that the 54 billionaires in the UK paid tax at an average rate of 0.14%. For them tax freedom day arrives at about 12.15pm today.

The message is clear: tax freedom day for some arrives on the first day of the year. For the poorest in our society it arrives last. They have the highest tax burden of all – at almost 50% of their income. Their tax freedom day is at the end of June.

So let’s stop the nonsense of discussing tax freedom day, and let’s ask the real question, given that the wealthiest are now, without doubt, the greatest beneficiary of government largesse as the economic bail out proceeds. Let’s ask instead about the justice in the way tax liabilities are distributed, and make sure that 2009 is the year that progressive taxation is put firmly back on the agenda. Nothing else s acceptable in the current economic climate,” says Richard Murphy.

Read the full article.

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