UK Tax Freedom Day Will Be Later Next Year

Tax-News.com, London

22 April 2002

UK free market think tank the Adam Smith Institute says that as a result of Gordon Brown's tax increases in last week's budget, Tax Freedom Day for Brits in 2003 won't be until 8th June; that's the day on which the taxpayer stops working for the government and starts to earn money for himself or herself.

This year Tax Freedom Day will be 5th June, which is quite surprisingly two days earlier than in 2001 when it was 7th June.

Says the Institute: 'The Chancellor is also predicting high deficits for this year. If these are put into the equation, since all borrowing has to be paid for, and deficits
are paid for by future taxpayers the 2002 date pushes out to 12 June.'

Dr Eamonn Butler, Director of the Adam Smith Institute, says: "This means we will have to work until 5 June just to pay our taxes. But then we'll have to work another week just to pay off the Chancellor's increased debts."

International economist Gabriel Stein, who calculates Tax Freedom Day on behalf of the Institute, comments: "Of course we should celebrate when Tax Freedom Day moves earlier. But the date is only a prediction, based on exceedingly optimistic assumptions about growth rates by the Chancellor. And real and substantial rises in the tax burden will certainly come next year. "

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