The TaxPayers’ Alliance has forecast that the tax burden is due to hit an eye-watering 37.1 per cent of GDP by 2028-29. Yes it will be higher than at any time since the Second World War.
The coronavirus pandemic is one cause for the rise in public expenditure but the freezing of allowances has increased personal taxes in real terms as inflation has risen. The rise in social security payments as there are more claims for disability payments has not helped with an ageing population needing more support.
But it is clear that the population, particularly in the big cities, are coming to rely on social security benefits when the incentives to work are poor. Politicians have not got to grips with the negative social trends and if the Labour Party gets elected as the Government this will surely get worse.
See https://www.taxpayersalliance.com/briefing_the_rising_tax_burden for more analysis.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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