Thursday, October 04, 2007

Dump Income Tax!

I have been perusing the government statistics that I posted earlier this morning, and here's an interesting fact to consider.
  • In 2006/07, government spending was £586.6 billion.

  • In 2002/03, government spending was £420.8 billion.

  • In 2006/07, income tax receipts were £152.5 billion.

In other words, if we returned to 2002/03 levels of government spending, we could abolish Income Tax for everyone, and still have £13.3 billion left over!

The £13.3 billion left over is enough to abolish, at 2006/07 figures:
  • Inheritance Tax (£3.9 bn)

  • Capital Gains Tax (£4.6 bn)

  • Duty on Wine (£2.5 bn)

  • Duty on Spirits (£2.3 bn)

For other comparisons, check out this selection of graphs at Politicalog. As Allan says...
New Labour are taking almost 41% more tax than they were 7 years ago. Where the fuck has it all gone?

Good question, Allan; a very good question. So, come on, Gordon, you one-eyed cunt of death: where the fuck has the money gone?

Does anyone out there think that we have got value for money? Or would you prefer to have what is taken from you in income tax in your back pocket instead?

UPDATE: if we returned to the level of government spending in 2001/02—which was £389.3 billion—we get an extra £31.4 billion to spend.

With this money, the following taxes could be abolished (and we would still have £300 million in the pot—this is not quite enough to abolish the Aggregates Levy (£339 million)):
  • Petroleum Revenue (£1.6 bn)

  • Tobacco Duty (£8.1 bn)

  • Beer Duty (£3.2 bn)

  • Cider/Perry Duty (£0.2 bn)

  • Stamp Duty (£14.3 bn)

  • Betting & Gaming Duties (£1.4 bn)

  • Insurance Premium Tax (£2.4 bn)

This leaves us with only nine taxes left, the big ones being NICs (£95.1 bn), VAT (£80.0 bn), Corporation Tax (£49.5 bn) and Fuel Duty (£25.1 bn).

The remaining ones are Customs Duties (£2.4 bn), Air Passenger Duty (£2.1 bn), Landfill Tax (£0.9 bn), Climate Change Levy (£0.7 bn) and the Aggregates Levy (£0.3 bn).

19 comments:

Terry said...

in one recent year stamp duty brought in more than inheritance tax and capital gains tax combined

Ed said...

Those figures are nothing short of eye-popping.

Anonymous said...

A couple of the taxes that are left (last couple of paragraphs) have EU origins - most obviously VAT.

Now can we leave the EU?

Ed said...

VAT was a temporary fudge!

Englishman Abroad said...

Just think of the effect on the economy!!
Bloody thing would take off!!

Where do we sign??

Ingram said...

$586Bn out, $423Bn in - is this borrowing of £163Bn to fund the deficit, or am I missing something obvious (not been in detail through the reports yet)...

Devil's Kitchen said...

No, you have spotted the simplification in my post; government borrowing is indeed at about £163 billion at present.

In the outgoings detailed breakdown, you will see that this costs us about £30 billion per year in interest repayments.

DK

Diogenes said...

Its a good job we didn't have an extravagant Chancellor!

Devil's Kitchen said...

P.S. If you recall, When Gordon started out he had a surplus -- the so-called "warchest" -- of £16 billion...

DK

Diogenes said...

I honestly thought that I could not hate Brown more than I already did.

DK you are an inspiration.

Dr Ray said...

Well, here is one example of where it is going. They are spending £550 million annually on 2nd wave diagnostic and treatment centres (ISTC) which nobody wants.

Roger Thornhill said...

If you want to make the economy rocket, cut corporation tax to something hatstand like 10%. See the companies from around the world relocate.

If we saved £160m, I'd rather uses it to first stop borrowing. Then we would have £30bln to play with for a start.

BTW, have you noticed - £160odd bln up since 2002/3 is about what we are spending on QANGOs...

Anonymous said...

I can't understand how you could abolish income tax from those figures?

Anonymous said...

Er, Inflation?

Anonymous said...

What? State expenditure was 420.8 billion 02/03 yet income tax revenue was 152.5 billion 06/07. That's a big difference.

John Trenchard said...

"I can't understand how you could abolish income tax from those figures?"

spending in 2006/07: 586.6 billion
spending in 2001/02: 389.3 billion

586.6 minus 389.3 = 197.3 billion

2006/07 income tax receipts: 152.5 billion

197.3 - 152.5 = 44.8 billion. so thats income tax abolished for everyone.

and still 44.8 billion to play with.

John Trenchard said...

while Brownstuff has been running up deficits, across the water in Oirland, they're getting budget surpluses...

(along with tax cuts year on year...)

http://www.ireland.com/focus/budget2007/news/news43.htm

"A budget surplus of 2.3 per cent of gross domestic product (GDP) is expected for 2006."

Shug Niggurath said...

Brown stripped the assets of our country in his first couple of years to pay for the dross we have now working on the payroll.

Cunt that he is.

We know that 'prudence' was spin.

Flat tax is something I really buy into - even if that means a flat income tax rate too, because it will strip so much bureaucracy that it'll be worth it. I understand the need to pay for services.

I just don't understand the need to pay for so fucking many of them.

Anonymous said...

Foolish, foolish boy.
A scheme, such as you propose, would necessitate the firing of thousands of HM tax inspectors. The world as we know it would cease to exist. It would be the end of history. Madness! Madness!