Saturday, June 03, 2006

Happy Tax Freedom Day


Back in the Middle Ages, we peasants had to spend vast swathes of the year working for our feudal lords. And all we got in return were unwanted wars and the Black Death.

These days we have to spend vast swathes of the year working for Big Government. And all we get in return are unwanted wars and... er, well, at least we get to laugh at my Lord of Prezza I guess.

Today, at last, we've made it through to another Tax Freedom Day. Rejoice!Over at the Adam Smith Institute, they've put together an excellent site telling us everything we need to know about TFD:
  • It's three days later this year- again
  • Blair's government has pushed it forward by ten days since they came to power; it's now later than at any time since 1988, later even than in Germany
  • Forty years ago it fell in late April, but Wilson's abysmal government raced it forward at an lunatic five days a year: by 1970 it was a whole month later
  • Thatcher found it very difficult to drag it back: the need to balance the fiscal books in the face of massive economic restructuring meant that under Thatcher/Major it was never earlier than 21 May, and even that was distorted by the early-nineties recession


Looking forward, the signs are not encouraging.

Brown's own budget projections say TFD will move forward by another 5 days over the next couple of years. Bad enough, but beyond that the fiscal sums look even more ominous. Brown's arithmetic is crudely balanced by assuming he can slam on the spending brakes while at the same time extracting every last drop of tax revenue. To the rest of us that looks like a fiscal Black Hole which will only be filled by higher taxes.

So enjoy this early summer TFD. In a few years time it won't come until harvest time. When we'll all be out slaving in the fields to fill my Lord P's pie barn.

Chart shows 40 years of TFD (lifted from ASI site)

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