Families are in desperate need of radical tax reforms, says Taxpayers' Alliance

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Sharecast News | 22 Dec, 2014

Updated : 20:32

The average UK household pays £274 more in tax than it receives in benefits, the Taxpayers’ Alliance has revealed in its latest analysis.

Data released from the Office of National Statistics also found that households on super low incomes pay a higher percentage of their gross annual income than any other portion of society.

This high percentage primarily comes from council tax, VAT and taxes on items like cigarettes and alcohol, according to the Telegraph.

The report also revealed that the top 10% of households pay an even bigger sum, £30,023 more in taxes than they receive from the state in benefits and services.

A spokesman from the Taxpayers’ Alliance told the Telegraph that the government should refrain from raising any taxes, including those levied on the rich, to maintain some fairness.

He added that VAT and tax on items like alcohol should be lowered, despite marking the governments second biggest revenue raiser for 2014.

The poorest households, those who fall into the bottom 10%, receive less tax credits and therefore receive fewer services and benefits than those in higher income groups.

Chief executive Jonathan Isaby from the TaxPayers’ Alliance told the title that radical reforms were necessary.

He said: "This analysis shows how pernicious our tax burden has become. Not only does the tax system hit the poorest hardest, but those at the top are already contributing far more than anybody could reasonably describe as their ‘fair share’.”

“Our tax system is neither progressive nor fair, and we need radical reform as well as necessary savings if the way we tax and spend is to become fit for purpose.”

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