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Good news - things are rapidly getting back to peak boom years!!!

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    Good news - things are rapidly getting back to peak boom years!!!

    Well for HMRC anyway.

    Income tax payments hit record high of £153bn

    Income tax receipts hit an all-time high of more than £153bn last year, with VAT and most drink and tobacco duties also reaching new peaks, according to HM Revenue & Customs (HMRC).

    Four years after the credit crisis began, the total paid by taxpayers during 2010/2011 increased by 10pc on 2009/10 to more than £447bn, close on the pre-credit crisis peak for total revenues of £451bn in 2007/2008.

    In addition to record receipts from income tax, last January's increase in the standard rate of VAT to 20pc boosted returns from £70bn to £85bn. (AtW's comment: so 2.5% increase generated £15 bln)

    Changes to National Insurance Contributions (NICs), including doubling the top rate paid by employees with income above £42,484 a year, lifted returns from NICS to nearly £97bn. (AtW's comment: FFS, nearly 70% of income tax totals.)

    Richard Mannion, a director of accountants Smith & Williamson, said: "Taxes have risen while the economy has remained flat and that scenario is likely to be repeated in the current tax year, 2011/12.

    "The main factors are the increase in VAT and increases in income tax payable by the better-off, rather than an economic recovery. Total income tax set a new record in 2010/11 which presumably reflects the new 50pc top rate and the loss of personal allowances for better off taxpayers under Pay As You Earn (PAYE)."

    Source:
    Income tax payments hit record high of £153bn - Telegraph

    It's party time!

    #2
    Not one mention of the word 'inflation' in that article.

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