▲ | kypro 5 days ago | |
> The UK has a lower tax regime than most equivalent nations. If we wanted a better NHS we could just collect similar tax rates to that of Germany or other western nations. This is largely untrue today since the Conservatives have significantly increased taxes over the last decade. As it stands I think Germany only taxes around 1-2% more of GDP than us. The primary difference between Germany and the UK in terms of public service funding is that the UK funds most of it's healthcare via taxation where as Germany operates a duel model which means healthcare isn't funded so much from taxation, meaning they have more money for other things. Additionally, Germany has a much higher per-capita GDP which means they can afford significantly better public services even if they tax an equivalent share of GDP. Finally what Germany funds with additional taxation the UK more than makes up for by running much larger deficits. The issue isn't that the UK government isn't spending enough as a share of GDP. | ||
▲ | louthy 5 days ago | parent [-] | |
From the IFS [1]: "UK tax revenue was 33.5% of gross domestic product (GDP ) in 2021 – the most recent year for which there are internationally comparable data. This is slightly below the average for both the G7 (36.3%) and the OECD (34.1%). While UK taxes are higher than in most other English-speaking developed economies (such as Australia, Canada, New Zealand, Ireland and the United States), they are considerably lower than in most other western European countries (average tax revenue amongst the EU14 was 39.9% of GDP ). Under current government plans, UK tax revenue is forecast to increase to 37.7% of GDP by 2027–28. This would take the UK above both the current OECD and G7 averages. It should be noted, however, that other governments may also increase their levels of taxation by then." If it's just Germany we're comparing to, then there are still multiple percentage differences. Germany is close to the average of 39.5% of GDP and the UK is 33.5% raising to 37.7%. Nearly 2% difference, which is a lot. It doesn't matter how the tax is raised, it's the total investment that matters. We have been a low tax economy for a long time (compared to similar European nations), that was my entire point: if we want better services then we are unlikely to get them in a low tax economy. Recent changes to the tax levels doesn't change how we got to this position in the first place. [1] https://ifs.org.uk/taxlab/taxlab-key-questions/how-do-uk-tax... |