New research from the TaxPayers' Alliance (TPA) reveals that the total amount of tax paid by the average household increased by 2.7 per cent in 2014-2015 on the previous year.
Politicians of all stripes lament the high cost of living in the UK yet fail to address one of the major causes of the squeeze, which is high taxes. What's more they are adding to that burden by introducing new taxes like the Sugar Tax, hitting the poorest households the hardest. New research from the TPA provides an estimate of the total amount of tax paid by different types of households over their lifetimes.
Key Findings:
- Over a lifetime, an average household will pay £826,030 in direct and indirect taxes.
- This figure represents a 2.7 per cent increase on the lifetime tax calculation for an average UK household last year.
- In 2014-15, an average UK household had a gross income of £41,027.
- At this level of income it would take more than 20 years just to pay their lifetime tax bill.
- Over a lifetime, an average household in the bottom 20 per cent by income will pay £319,732 in direct and indirect taxes.
- The figure represents a 2.2 per cent increase on the lifetime tax calculation for this group last year.
- In 2014-15, an average household within this group had a gross income of £13,841.
- At this level of income it would take just over 23 years to pay their lifetime tax bill.
- Over a lifetime, an average household in the top 20 per cent by income will pay £1,686,970 in direct and indirect taxes.Over a lifetime, an average household will pay £287,963 in income tax.
- This represents a 4.3 per cent increase on the lifetime tax calculation for this group last year.
- In 2014-15, an average household within this group had a gross income of £86,768.
- At this level of income it would take more than 19 years to pay their lifetime tax bill.
- Over a lifetime, an average household will pay £169,371 of VAT.
- Over a lifetime, an average household will pay £107,045 of Employee’s National Insurance Contributions.
- Over a lifetime, an average household will pay £65,068 of Council Tax.
John O'Connell, Chief Executive of the TaxPayers' Alliance, said:
"Politicians are forever lamenting the high cost of living yet all the while adding to the burden through higher taxes. Tax bills for households in every income group have gone up over the last year and that has obvious implications on hard-pressed families, already struggling with ever-rising bills.
"If we are to start living within our means as a country the government simply must tighten its belt and take the task of finding savings seriously. With a new administration in place, now is the time to introduce radical reforms to our tax system and spending priorities to ease the pressure on ordinary taxpayers and boost economic growth."