Tax In England

The average Englishman does not think very much about tax. He really should because he is a tax slave and being robbed blind. One reason why he does not notice is that it is deducted before he ever sees it. Another is that Her Majesty's Government raises it slowly as a percentage each year. So in good times he becomes a bit better off but most of his rightful extra earnings get siphoned off to pay for politicians, their peculiar friends and those expensive boondoggles that blow up on the launch pad or go eight lanes wide through national parks. Here is some thing on the truth.

Employers pay VAT and National Insurance on the gross wage before the employee ever knows about it
The man gets his gross minus Income Tax and another lot of National Insurance.
He spends his money and pays another lot of VAT AND all of the supplier's company taxes.
Or he saves his money and gets Interest minus tax AND minus Inflation.
Petrol tax is some 400% - buy one gallon and pay for another four.
Tobacco tax is in the same order.
So is booze tax.

This gives us approximately:-
Real income is VAT + NI + Gross Income = Gross + 17.5% + 12.8% - so 30.3% is wasted
Net Income = Gross - Income Tax - NI = about 10% and 9.4% so 19.4% goes
That is some 49.7%
Spending food, housing etcetera is X + VAT + company taxes + petrol tax = 17.5% + at least 15%  so another 32.5% is extorted for a running total of 82.2%

Add in council tax, car tax, death tax, house sales tax and various other sneakies and you are lucky if you get out under 80%

If you doubt look at Brown and the Budget where he boasts of spending  £10,900  for every man woman and child but says nothing of how much he extorts.

There are answers. One is emigrate to a less rapacious country which is warmer. Move off shore if you are big enough. Some people fly under the radar. This is illegal and effective. There are gypsies who do not exist and have no records to prove it. It goes with the territory.

Frederic Bastiat
"When plunder becomes a way of life for a group of men, they create for themselves in the course of time, a legal system that authorises it, and a moral code that glorifies it.”
Thus quoth
Frédéric Bastiat

 

Dave Hartnett
Is the tax man who showed his true colours; defrauding the Treasury of millions then going to work for the enemy after are clear statements of intent.

 

Brown Gives With One Hand And Takes With The Other [ 24 November 2008 ]
QUOTE
A three-pronged assault on high earners will leave some paying 60p in tax for every £1 they earn. A raft of income tax and national insurance rises will strip more than £3,000 a year from the pockets of the very wealthiest by 2011. Those with earnings of more than £150,000 a year will face a 45 per cent income tax rate from April 2011.......

One tax expert described the Chancellor's move as 'a double stealth tax'. At present, those earning below £5,464 a year don't pay any National Insurance. Then earnings of up to £40,040 are charged 11 per cent, and any earnings on top are charged at 1 per cent. From 2011, workers will pay 11.5 per cent at the basic rate, and 1.5 per cent on the higher rate. And from next April the top band will match that of income tax, expected to be £43,880. So anyone earning more than the previous limit will have to pay the basic rate of 11 per cent on an extra £3,835 of their earnings instead of the higher rate amount of 1 per cent. 
UNQUOTE
Tax the rich sounds all right except to the rich. That is a vote buying move. The sneaky taxes are there to screw the poor and feed Brown's greed which is unlimited. Anyone who thinks that tax is under 50% of their gross is badly misinformed. It is nearer 80% for the average man. See NATIONAL INSURANCE Goes Up Again

 

National Insurance Rates
Employer 12.8%
Employee   9.4%
Search for contributions to find the relevant tables.

Truth In Taxation - A Tory Idea [ 21 March 2011 ]
QUOTE
The true rate of tax on wages includes Employer’s and Employee’s NI, as both come out of the money required by a business to pay their staff. Employer’s NI is paid on all income and Employee’s continues at 1% after they reach the upper threshold

The resulting tax rates are therefore 43.8%, for basic rate taxpayers, 53.8% for middle rate taxpayers, and 63.8% for those paying top rate tax. NI is going up in April so you can add 2% to all these rates.
UNQUOTE
Osborne is making a good move which is a pleasant change. This should include the Employer's contribution of 12.8% and the Employee's contribution of 11%

 

Errors & omissions, broken links, cock ups, over-emphasis, malice [ real or imaginary ] or whatever; if you find any I am open to comment.
 
Email me at Mike Emery. All financial contributions are cheerfully accepted. If you want to keep it private, use my PGP KeyHome Page

Updated on 18/04/2014 09:08