1995 was the last time taxpayers paid more of their income to the taxman according to new research from the Adam Smith Institute. A measure coined by the institute, "Tax Freedom Day" marks the end of the period in which taxpayers essentially work for the government within a year. This year, May 29 marks the day, the latest day in the year since 1995.
The period before Tax Freedom day stands at 148 days in 2018, up from 145 in 2017. The shortest time was recorded in 1996 at 122 days.
Dr Eamonn Butler of the Adam Smith Institute comments that "Britain’s tax burden is moving in the wrong direction".
The study includes such taxes as insurance premium tax, stamp duty, national insurance, VAT and income tax. 40.65% of net national income valued at £700 billion is expected to be collected by the Treasury in 2018.
The historic level of taxation is highlighted by Dr Butler:
"In the Middle Ages, a serf only had to work four months of the year for his feudal landlord, whereas in modern Britain people have to toil five months for the tax gatherers.
“It appears Britain is stuck in the past with an over-large and inefficient public sector that has cost each of us 148 days' hard labour this year, the most in over two decades."
The research could support the argument espoused by Phillip Hammond that raising taxes to support the NHS is not desirable.
The Chancellor had expressed his opposition to the proposed tax, stating that it was "not necessarily" a good idea.
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Information is based on our current understanding of taxation legislation and regulations which is subject to change.