Philip Hollobone, Conservative MP, Says UK Should Set Annual Tax Freedom Date

Tory: Set Annual Tax Freedom Date

The Government should earmark a date each year as Tax Freedom Day when people start earning money for themselves, MPs have been told.

Conservative Philip Hollobone believed highlighting such an occasion would make tax more open as workers realised how much of their wages were given to the Treasury.

He told MPs: "The purpose is to try and provide some transparency for the British taxpayer about the burden of taxation on them and on the national economy."

Tax Freedom Day is when an employee supposedly finishes earning money which goes to the state as tax and begins working for their own benefit.

Opening the second reading debate of his Taxation Freedom Day Bill, Mr Hollobone, the MP for Kettering, said it "reflected the proportion of tax paid by individuals from their incomes".

He added: "The idea is that the Chancellor of the Exchequer must each year specify a day which will be observed as Taxation Freedom Day.

"This shall mark the day in any given calendar year on which the UK's net national income reaches the level of the UK's estimated level of national taxation for that year."

Mr Hollobone's plan would include all direct, indirect and local taxes with the level calculated by the "independent and trusted" Office for National Statistics. He wanted the Chancellor to tell Parliament before November 30 each year when the following year's Tax Freedom Day would fall.

Mr Hollobone told the Commons this year's Tax freedom Day was May 30 - three days later than in 2010.

Tory Philip Davies, the Shipley MP, said: "I presume this (Bill) is to try and shame the Government into making Tax Freedom Day as early as possible each year, which is the basis on which I support it."

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