Headline:
TAX NEWS: Labour 'adds £6,000 household tax burden
Description:
TAX NEWS: Labour 'adds £6,000 household tax burden'. By Dan Martin
The tax burden on every UK household has risen by more than £6,000 since Labour came to power and it is set to increase further, new research claims.
The Centre for Policy Studies (CPS) said the tax grab on each of Britain's 24.5 million households is £6,182 more than it was in 1997. It predicted that by 2009/10, the time of the next general election, the figure will rise to £8,153 a year.
CPS warned that the cost of higher taxes is "higher than people think". The report, which analysed the UK's main taxes including income tax, national insurance, VAT, council tax and fuel duties said: "It is a double whammy – less money on people's pocket's today, and even less tomorrow thanks to lower economic growth."
It claimed a 1% rise in the tax/GDP ratio can reduce capita output levels by 0.3% to 0.7% a year, while each 1% GDP rise in distortionary taxation can cut economic growth by 0.2% to 0.4% a year.
"The tax burden since 1996/97 will, by next year, have increased by over four percentage points. Taking these figures together, this suggests that higher taxes could reduce growth by between 0.3% and 0.5% a year," CPS said.
Responding to the report, shadow chancellor George Chancellor said the research showed Gordon Brown is a "oneman tax creation industry".
"The longer that he remains in power, the more we will see the burden of taxation on Britain's hard-working families rise," he added.
"It is exactly the wrong approach to competing in the new global economy."
The tax burden on every UK household has risen by more than £6,000 since Labour came to power and it is set to increase further, new research claims.
The Centre for Policy Studies (CPS) said the tax grab on each of Britain's 24.5 million households is £6,182 more than it was in 1997. It predicted that by 2009/10, the time of the next general election, the figure will rise to £8,153 a year.
CPS warned that the cost of higher taxes is "higher than people think". The report, which analysed the UK's main taxes including income tax, national insurance, VAT, council tax and fuel duties said: "It is a double whammy – less money on people's pocket's today, and even less tomorrow thanks to lower economic growth."
It claimed a 1% rise in the tax/GDP ratio can reduce capita output levels by 0.3% to 0.7% a year, while each 1% GDP rise in distortionary taxation can cut economic growth by 0.2% to 0.4% a year.
"The tax burden since 1996/97 will, by next year, have increased by over four percentage points. Taking these figures together, this suggests that higher taxes could reduce growth by between 0.3% and 0.5% a year," CPS said.
Responding to the report, shadow chancellor George Chancellor said the research showed Gordon Brown is a "oneman tax creation industry".
"The longer that he remains in power, the more we will see the burden of taxation on Britain's hard-working families rise," he added.
"It is exactly the wrong approach to competing in the new global economy."
Date:
23.06.2006
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