LadyEllen
Posts: 10931
Joined: 6/30/2006 From: Stourport-England Status: offline
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Hi All This is going a bit off topic, but might be interesting in the present discussion. UK taxes - we are the biggest oil producer in the EU, but we have the highest fuel costs - and yes, this is because of tax and duty. (Its the same with cigarettes and booze). Around 3/4 of the price of one litre of petrol (GBP 0-99 last week/litre = GBP 4-50 per gallon), goes to the government, so around GBP 3-40 for every gallon is tax. There are something like 25 million cars in the UK (last time I heard), and assuming each uses one tank of 50 litres per two weeks (a big underestimate considering that the car is the only viable form of transport here), thats GBP 465 million in taxes on personal vehicle fuel, per week, or about GBP 25 billion per year. Add in road tax (a charge for using the roads, and yet they are now talking about road use charging) - this varies according to engine size and cleanliness, but as a round figure lets choose GBP 100-00 as a low average per vehicle per year. Thats GBP 2.5 billion per year. Now, insurance for driving - yes there's a tax on that too - its low of course (2% or so I think), but driving insurance costs a lot here and if we said GBP 250-00 as a low average per year per vehicle, thats GBP 5-00 tax per vehicle = another GBP 125 million per year. And then, roadworthiness tests and repairs - all of which have VAT at 17.5% on them. Assuming repairs etc of GBP 500-00 per vehicle per year, thats nearly GBP 2 billion per year in VAT on repairs. Total government revenue from personal car use = c. GBP 30 billion per year. Now, why is it again that the government chooses to do nothing to solve the dire public transport system here in the UK? The national health service by the way, is (or at least is meant to be) paid for via a 9% deduction at source from wages (plus an 11% contribution from the employer). On top of this the average income tax deducted on top of that 9% at source, is 20%. Assuming 20 million workers in the UK, and the average salary of GBP 25k per year gross, that means each employment on average generates GBP 5000-00 per year for the health service or in total GBP 100,000,000,000-00 per year. This does not include government revenue raised by income tax, which is around twice that figure. And then, we have ignored taxes on domestic businesses, international businesses operating from here, tax on savings and investments, TV licence (a tax used to pay for the BBC), tax on electric and gas, local taxes and the best tax of all - death duty and inheritance tax, which now affects not the rich but ordinary working people who already paid tax on the assets they built up over their life. Oh yes, the UK is a great place to live in alright, but then it costs a lot of money to pretend to be a world power when one is just an island offshore from Europe. E
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