Economics - Taxes 3

Hard-working Brits have been stung by 60 stealth tax rises since Gordon Brown became Chancellor, say the Tories. Cigarettes and booze have gone through the roof, holiday flight taxes are sky-high — and even dying now costs more. Labour’s tax burden is so high Brits spent the first 153 days of the year working for the Government rather than themselves. Yesterday was Tax Freedom Day — the date we actually begin earning for ourselves. And Shadow Treasury Minister Maurice Saatchi introduced a House of Lords bill which seeks to mark the day with a Bank Holiday every year — so the nation can celebrate. Here’s a guide to some of the sneaky ways in which Labour grabs your cash.

DEATH DUTY: Inheritance Tax thresholds have been virtually frozen, leaving 1.5million families with a huge bill when a loved one dies. Mr Brown has left the basic threshold at £255,000 — up from £250,000. Only half a million people had properties worth £250,000 in 1997 but that figure has trebled to 1.5million since.

MIRAS AXED: Mr Brown scrapped mortgage tax relief in 1999 spelling misery for millions of homeowners.

STAMP DUTY: The cost of buying a house has rocketed for millions as stamp duty has risen. Anyone buying a house costing between £250,000 and £500,000 must now stump up 3 per cent of the overall price up front.

COUNCIL TAX: In 1997/98, the average band D council tax bill in England was £689. In 2003/04, it is £1,102, a 60 per cent hike.

PENSIONS TAX: The Chancellor ordered an astonishing raid on pension schemes in his first year netting £5billion. He has also axed tax relief on private health insurance premiums.

HOLIDAY TAX: Airport duties have rocketed under Labour — slapping up to £100 on the cost of family holidays.

CIGS AND BOOZE: Tax on 20 cigarettes has gone up every year under Labour, adding £1.02 on a carton. Wine and beer has also risen under the Chancellor.

MARRIED COUPLE’S ALLOWANCE: The Chancellor abolished this tax break in 1999 in a move costing couples £2,000 a year.

TRANSPORT: Motorists fork out a staggering £45billion a year.
VAT on new cars and duty on petrol combine to make drivers the Chancellor’s cash cows.

INCOME TAX: Allowances have been frozen meaning more of our earnings are taxed. National Insurance has gone up by 1p for workers and employer.

Taxes have soared by a whopping £133.5billion since Tony Blair came to power in 1997. That amounts to £2,269 for every man, woman and child, or £43.50 a week. Labour promised no income tax rises when they were elected. But they have still sent overall taxes rising from £270billion then to £400billion today. Britain’s bosses backed the Tory campaign for a national holiday, to be known as Independence Day, to mark the end of tax paying each year.

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