How large a share of national income, should the taxman take? 20%; 60%; somewhere in the middle?
A report from last month’s economia provides relevant detail
VAT receipts made up 21% of HMRC’s total tax income in 2017/18, according to UHY Hacker Young, https://www.uhy-uk.com/, up from 18% in 2008/09. The Treasury has “become increasingly reliant on VAT as a source of revenue”, the firm said. The total amount of VAT collected annually by HMRC jumped by 60% from £78bn in 2008/09 to £125bn in 2017/18. HMRC’s total tax take increased to £594bn last year and now stands at a 30-year high. It represents 33% of GDP and ranks the UK 20 out of 36 OECD countries for highest tax burden. France tops the table at 46% while Ireland is considerably lower at 23%.