Are UK workers over-taxed? The answer in three infographics
There's a tax paradox in the UK.
Overall, we're paying more tax as a percentage of GDP than at any time since the 1940s - and most people believe they're over-taxed. Yet, at the same time, the average UK worker paid less tax on their wages in 2024 than any year since the War, and less tax than their counterparts in any other large European country.
How can this be?
Here’s the first part of a series on the tax mess that the UK is in... and what we can do about it.
Fascinating data as always, thanks Dan.
But are you conflating two things: how much tax we actually pay, and how much tax we feel like we're paying? (c.f., pitch vs frequency).
To use well-worn car analogies: if you're paying Rolls-Royce taxes AND have a Rolls-Royce on the drive you're probably going to feel ok about it. Whereas in the UK we're paying, say, Mercedes taxes but driving around in a Fiat Panda with a couple of bald tyres and rusty wings: you're probably not going to be feeling ok about it.
As the joke goes: in Europe they drive on the left, in the UK we drive on what's left.
Great article. It would be good to include student loans in the breakdown - vast majority of the professional workers in their 20s to early-mid 30s now paying (roughly) extra 7-15% effective income tax.