I attended a debate today to speak on the Bill that has been proposed by my colleague Philip Hollobone, for the Government to observe Taxation Freedom day. Now this does not mean no tax is paid on salary or purchases for a day(we wish..), but, as Philip explained:
Each year, the Chancellor of the Exchequer must, by way of a statutory instrument, specify a day that will be observed as taxation freedom day. The purpose of this taxation freedom day will be to mark the day in any given calendar year on which the United Kingdom's net national income reaches the level of the United Kingdom's estimated level of national taxation for that calendar year.
Taxation freedom day in 2011 was 30 May—three days later than last year—which means that, on average, every British taxpayer had to hand over all their income to Her Majesty's Government for the first 149 days of 2011. Only after 30 May did they get to keep for themselves any income they earned. Having recognition of such a calendar date would reflect and get across in a very simple and straightforward way the burden of taxation on our economy.
I made numerous contributions during the debate, and the whole debate can be read here.
Below are some extracts from my points:
Is not a central point about tax freedom days the need to avoid the risk of creative accounting? We must be sure that accounts are accurate, especially where there has been a change of Government. We must ensure that, whatever happens, there will be no creative accounting; we must be able to trust the figures.
May I suggest one saving that could be made to help fund the cost of these regulations? The excellent TaxPayers Alliance recently published a document showing that we could save £113 million by getting rid of all the full-time paid union officials, which would also enable people to work more effectively.
My own research has indicated to me that the effective tax rate on the least well off in the past 10 years, under the previous Government, was higher than the effective tax rate on the richest. That is the inequality fostered under the previous Government.
It has been an honour and privilege to serve as Member of Parliament for Dover & Deal. I hope to be re-elected to serve our community for another term.
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