So how much tax do we really pay. When we buy an item we tend to think the only tax we pay on it is vat but of course that isnít true. If a company makes a washing machine everyone involved in its construction is taxed, the workers pay tax, the company pays tax and the shareholders pay tax. When the machine is shipped the delivery company driver pays tax as does his company and its shareholders then thereís the wholesaler and his workers and shareholders paying tax then its back to another delivery company and onto the retailer who goes through the same old taxation cycle. This naturally doesnít cover all the taxation; the washing machine will be made of many parts from many companies and endless taxation. It is actually very difficult trying to figure out how much tax we pay. The general estimate is that between tax and profit your average item which costs a tenner to manufacture will, by the time it reaches the shops cost £100.


I can also remember a long while ago looking at the government budget then dividing it by the number of people who worked to find the average taxation per head, which I am sure you appreciate came out at more than some essential personnel earned.