UK Tax Burden Reaches Historic High

July 30, 2018 Taxation in UK

tax burdens in the UKLONDON – Taxpayers in the UK are paying the highest taxes in since the 60s, and the government looks keen to raise tax burdens even further.

Last week the UK think-tank the Taxpayers Alliance issued a new report which showed that the tax burden faced by individuals in the country is now higher than it has been in decades.

Currently, the amount of taxes collected by tax authorities in the UK is equivalent to approximately 34.3 percent of the national GDP.

The current tax burden level is the highest since 1969-70 when the tax burden reached a level of 35 percent.

The increased tax burden is a product of increased funding needs in key areas such as the national health system, along with mounting pressure from areas such as education and military spending.

The Taxpayers Alliance notes that the government is already looking at new tax in order to raise further funds, and these include ending fuel duty freezes, higher inheritance taxes, hiked council taxes, and even increases to income taxes.

However, while the government is looking at the new taxes, the Taxpayers Alliance is warning that the government should be looking at more sustainable funding sources.

It was noted that previous research shows the bottom 10 percent of earners in the UK already shell out as much as 49.5 percent of their income in taxes.