Saturday, March 19, 2005

Taxed to death

The Budget got me thinking about taxes. Why do the taxes on booze, fags and petrol rise every year without fail? Probably because however much you tax them people will still buy them (US readers may be unaware that we pay around $8 a gallon for petrol in the UK. What are we, nuts?).

I wondered how much tax the average person would pay, taking into account all the stealth taxes beyond the basic income tax.

First, a disclaimer: I'm not an accountant or mathematician.

Premise: Income of £25,000 p.a. of which £10,000 is spent on supplies subject to VAT. Average car filled up fortnightly at a cost of £30. Income tax 22%. National Insurance 11%. VAT 17.5%. Petrol tax 80%. Council tax £1,300 p.a.

I know I missed off a lot of taxes there, but just those listed above bring the total tax paid up to around 50%.

Yes, FIFTY PERCENT. Minimum. Who knew?

Just goes to show that bloody everything is taxed.