FAMILY will have to see their tax rates rise by £4,200 per household in less than a decade, shocking new research finds.
Public coffers will be stacked to the tune of £1 trillion a year by 2026 – with the tax having increased from 33% of national output in 2009/10 to 38% in 2028.
Prime Minister Jeremy Hunt was urged today to stop tinkering and instead cut stamp duty and simplify the tax code to ease that burden and move Britain forward.
Left-wing Resolution Foundation think-tank says it’s time to “stay away from flipping” adjustments to taxes like the Corporate Tax and start targeting growth with strides. reckless.
They insisted: “Britain needs to move away from the simple and dangerous cycle of promising tax cuts while implementing tax increases.”
And bad news for Tory MPs hungry for cuts, they warn without radical reforms, taxes will only rise further.
Instead, economists say the Prime Minister must start making companies “cheaper and easier to grow and move premises”.
They propose a £5 billion bailout by scrapping the 2025 stamp duty hike and halving the obnoxious move tax on primary homes and non-residential properties.
And they say this can be paid for by reducing the VAT threshold for businesses from £85,000 to £30,000 which they say is currently keeping small companies from growing.
And they called on the Treasury Department to continue with plans to simplify the tax system to level the playing field for the less fortunate by “preventing the well-advised wealthy from using the complexities of it to reduce their bills.”
They also suggest taxing rental income as employment income – adding that National Insurance’s overall rate could be reduced by 1% without reducing revenue.
“Overall, UK taxes have skyrocketed and are more likely to rise than fall in the future, despite the mainstream rhetoric,” said Adam Corlett, think tank’s head of figures. around the cut.
“The UK tax system needs a complete overhaul so that it focuses on supporting rather than hindering economic growth, reducing inequality and creating a level playing field.
“These are the fundamentals that most taxpayers expect, but our current system often doesn’t deliver.”