'Three extra days' to pay for state
Published 30/12/2011 | 00:12
Taxpayers will have to work until July 26 before they can keep what they earn, after paying their share of the cost of government and regulation, a campaign group has said.
The TaxPayers' Alliance (TPA) said the average employee will work for three more days than they did in 2007 before they can keep their pay.
The Adam Smith Institute think-tank came up with the concept of Tax Freedom Day which calculates exactly when workers stop paying for the state.
The TPA has now come up with the Cost of Government Day which also includes the burden of regulation on individuals.
Under its revised calculations the average worker will spend 208 days earning enough gross income to pay for their share of the cost of government spending and regulation.
When the TPA last calculated this in 2007 it was July 23.
Matthew Elliott, chief executive of the TPA, said: "Taxpayers should be looking forward to toasting in the New Year. Instead, the enormous cost of government spending and regulation means they will effectively be working for the Government until the summer.
"Government spending and expensive regulations are costing more than half of ordinary people's income and this simply cannot go on.
"The Government needs to cut spending, get rid of burdensome regulations and cut taxes to get the economy going and leave more taxpayers' money in their own pockets."