We’re working three more days for the taxman: It takes 149 days of earning in a year before our income is our own
By Daily Mail Reporter
Britons will have to work three days longer this year before they start earning money for themselves rather than the government.
Tax Freedom Day will fall on May 30 - 149 days into 2010 - according to the free-market think tank the Adam Smith Institute.
It said the three-day increase on 2009 was largely because of the rise in VAT from 15 per cent back up to 17.5 per cent at the beginning of the year.
If the budget deficit was all funded from tax - rather than with the help of loans –then Tax Freedom Day would shift back to July 8, pointing to Britain’s worst fiscal position since 1976.
Tom Clougherty, executive director of the institute, said: ‘Our Government relies so much on debt to fund spending that our traditional Tax Freedom Day measure makes them look more virtuous than they actually are.’
Of the 149 days, 41 is taken up by income tax, followed by National Insurance at 27 days.
It takes a further 21 days to cover all of the VAT the average Briton will pay this year, while the various different excise duties account for 13 days.
Council tax costs the equivalent of seven days’ pay, with stamp duty accounting for three days’ worth, and a further 18 days to cover a range of miscellaneous taxes.