£8-a-day extra tax by Labour
20 March 2010BRITS will next year be paying £8-a-day more tax than a decade ago if Labour are re-elected, it was revealed last night.
It means the average worker's annual tax bill will have soared by £3,000 in 10 years.
Tax will take £8,500 out of the average national wage of £23,300 by 2011/12, says respected think-tank Reform.
Hikes in National Insurance contributions are behind much of the extra cash paid to the taxman. A one per cent increase was announced by Chancellor Alistair Darling last November to be implemented in April 2011.
Gordon Brown also upped NI by one per cent in 2001 to raise £8billion more for the NHS. A third of all wages already go back to the Government in tax.
National Insurance contributions currently take 11 per cent out of lower wage packets, with high earners having to pay more. It comes on top of 20 per cent income tax for the lower paid, and 40 per cent on bigger salaries.
Reform devised an online tax calculator so Brits can see how much their bill has risen.
Director Andrew Haldenby said: "One of the most powerful ways to get a better tax system is to increase public understanding of the choices facing the Chancellor as he draws up the Budget.
"The tax calculators will give the same working knowledge of personal taxes." Meanwhile, a report found the public sector was wasting £25billion of taxpayers' cash a year due to a failure to reform procurement spending.
The Institute of Directors called the figure "staggering".
Mr Darling is putting the finishing touches to his crucial pre-election Budget, to be delivered next Wednesday.
Paying back the £900billion national debt could mean raising taxes still further.
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TO find how much more tax you are paying since 2000, go to www.reform.co.uk
@reformthinktank
