Already hard-pressed British taxpayers faces some of the largest direct and indirect tax rises in recent history, as petrol prices reach record highs and many families set to pay in extra tax of at least £2,800 extra each year.
The tax increases are supposed to be necessary to “balance the government’s deficit” but in reality the ConDem regime has increased expenditure on foreign aid and the war in Afghanistan. European Union membership has also seen of the sharpest rises in a number of years, while the ongoing cost of the immigration and asylum swindle, estimated by MigrationwatchUK to be of the order of £13 billion per year, continues full steam ahead.
British taxpayers will be made to pay for all this madness with changes to income tax, child benefits, tax credits and VAT increases.
According to a study paper released by the Resolution Foundation think tank, a couple with two children and a household income of £42,000 will lose £2,800 in accumulated taxes, a situation which the Foundation predicted will cause a “prolonged personal recession.”
The study also confirmed that it will be the middle classes who will suffer the most, with at least 700,000 middle-income earners being pushed in to the top tax rate as a result of changes announced by ConDem Chancellor George Osborne.
This will effectively double the tax burden for those people, a move which will completely undo Mr Osborne’s lifting of the tax threshold (the income level at which people start paying tax) to £10,000.
In addition, the changes to the tax structure will cause those middle income families to lose all child benefits as they become part of the top tax bracket.
The report went on to say that “The typical working household is now poorer in real terms than it was a year ago.
“In 2011, it will get poorer still. Even as growth resumes and the nadir of the financial crisis fades into memory, millions of families are living through a prolonged, personal recession.”
In addition, National Insurance contributions will rise in April.
As if that was not enough, all taxpayers are being hit by the increase in Value Added Tax (VAT) which, according to the report, will add at least £400 to the annual bills of the average family.
The projected increase in government revenue from this tax hike, which will amount to £13 billion, is a figure which just covers the foreign aid budget.
Motorists will also have felt the impact of the record increase in the cost of tank of petrol, with a rise of £3 within a 30 day period.
According to the Automobile Association, the monthly fuel bill for an average two-car family had increased by £34 in just a year.
“A 0.76p a litre increase in fuel duty on January 1 and VAT rising to 20 per cent, adding around 2.5p more to the pump price, accounted for the lion’s share of the latest increase,” the AA said.
AA president Edmund King was quoted as saying: “The huge fall in petrol sales shows that many drivers cannot afford to fill up. Sooner or later, politicians will have to face reality – more and more drivers cannot afford these prices.”