True. Or it would be if cigarette taxes were earmarked to go to the NHS. They are not. They go into the general slush fund to pay for whatever boondoggle currently has the Government’s panties in a wad.
Everyone working here pay 9% of their GROSS income purely to support the NHS and unemployment. Then we are taxed on top of that at between 23 and 40% on our NET earnings, a sales tax on everything but food and books of 20%, our local taxes based on the value of your home (if you rent, the landlord pays), a 70% tax on the cost of fuel .....
Worked it out once that in an average year, everything I earn after the 15th of August is mine, and that is only because I have a very good (and expensive) accountant.
Sorry for the minor rant - the Infernal Revenue really reamed me last quarter and am still annoyed!
Hypothecated or not, tobacco tax still pays for the NHS in the UK but not in the US.
Everyone does not pay 9% either, for example class 2 NIC’s paid by self-employed people are £2.50 a week, but I do agree taxation is far too high in the UK, but when I lived in California I was barely any better off.
Now I’m back in the UK I pay myself a salary equivalent to the annual tax free allowance and the rest in dividends at a much lower tax rate than PAYE income tax, but I realise not everyone can do that.
If you have need of an accountant, perhaps you should consider becoming a company? :)