31st July 2015
Families pay nearly £750,000 pounds a year in direct and indirect taxes, and the figure is rising.
Analysis by consumer group TaxPayers’ Alliance shows the average family pays £250,000 in income tax over a lifetime and that the total bill when all taxes are taken into account totals £734,240 over a lifetime – the equivalent to the average total household income for 19 years.
The figure is based on 2013/14 prices and is an increase on last year’s total of £717,650.
Households in the bottom 20% of earners pay £282,545 in taxes whereas a household in the top 20% will pay £1,488,275.
The average home will pay £253,040 in income tax, £146,775 in VAT, £92,795 in national insurance contributions and £59,955 in council tax.
TaxPayers’ Alliance puts the spending of those taxes into context by showing that £11.46 billion s spent on overseas aid, which is equal to the total lifetime tax paid by 15,610 families.
It said the £131 million – or the lifetime bill of 178 families – is being squandered on the NHS e-referral system ‘which is so bad that fax machines are being dusted off’.
The spending of £6 million by the Ministry of Defence on ear plugs that were not fit for purpose wasted the lifetime tax bill of eight families.
There were also £5.1 billion of ‘departmental losses’ in 2013/14 which is the contribution of 66 families’ lifetime tax.
Jonathan Isaby, chief executive of the TaxPayers’ Alliance, said: ‘This new analysis shows just how heavy the burden of taxation falls on each and every family across Britain, pushing up the cost of living.
‘Every arm of local and central government must redouble its efforts to root out unnecessary spending and inefficiency in everything they do, so that not a penny of this extraordinary bill is wasted.
‘Britain’s tax bill is too high – it must come down, and that means cutting out wasteful spending.’