Thursday, December 2, 2010

Economics 2/12/10: Exchequer returns - Burden of taxation

Let's take a quick look at the tax burden incidence as per latest Exchequer results.
Proportionally, the burden of taxes paid continues to rise (year on year) for Income Tax, VAT (although VAT burden increases have eased a little bit) and Excise Tax. The burden has been falling for CGT and CAT, Stamps and Customs. It is flat for Corporation Tax.
This goes back to the arguments I made recently - no matter whether it is the Exchequer who assumes new debt, or the banks (under the Guarantee and protection extended to them by the Exchequer), the taxpayers are the ones who will be on the hook to repay it all.

1 comment:

Sean said...

Hi Constantin,

What do yo think about raising the corporate tax rate. For one thing the low rate could be said to be immoral and akin to crossing a picket line. Corporation tax brings fairness to systems and economies and spreads the wealth. By undermining our neighbours we become economic scabs, imho.