"The NHS in England is under financial pressure. There is an intensifying debate about whether more money is needed and if so how much.
Among the options being suggested is a dedicated tax for the health service - transparent, easily understandable and less prone to political interference, or so the theory goes. So how realistic might it be?
The ring-fencing of tax for a specific purpose is known as hypothecation. One example, though not technically a tax, is the television licence fee, which is a levy specifically to fund the BBC.
The idea of a hypothecated tax for health has been knocked back and forth between economists for many years. "
It just so happens that the yield to the government from NI, about £126bn annually, is not far off the total spend on the NHS across the UK. (AtW's comment: how convenient! )
This would reflect the original purpose of NI after World War Two, which was to allow workers to insure themselves against sickness or other loss of earnings.
The lines have since become blurred, with NI now in effect an extension of income tax.
The panel's call for more money will hit taxpayers' wallets, whether its through income tax or a new health and social care levy.
The experts believe an extra £20bn is needed for the NHS in 2020 over and above current plans, with a few billion more needed for social care.
That would represent a big hit on taxpayers, individual or corporate.
But the supporters of a dedicated health and social care tax believe it would give voters reassurance that their money was going to the right place."
Should the NHS have its own tax? - BBC News
Among the options being suggested is a dedicated tax for the health service - transparent, easily understandable and less prone to political interference, or so the theory goes. So how realistic might it be?
The ring-fencing of tax for a specific purpose is known as hypothecation. One example, though not technically a tax, is the television licence fee, which is a levy specifically to fund the BBC.
The idea of a hypothecated tax for health has been knocked back and forth between economists for many years. "
It just so happens that the yield to the government from NI, about £126bn annually, is not far off the total spend on the NHS across the UK. (AtW's comment: how convenient! )
This would reflect the original purpose of NI after World War Two, which was to allow workers to insure themselves against sickness or other loss of earnings.
The lines have since become blurred, with NI now in effect an extension of income tax.
The panel's call for more money will hit taxpayers' wallets, whether its through income tax or a new health and social care levy.
The experts believe an extra £20bn is needed for the NHS in 2020 over and above current plans, with a few billion more needed for social care.
That would represent a big hit on taxpayers, individual or corporate.
But the supporters of a dedicated health and social care tax believe it would give voters reassurance that their money was going to the right place."
Should the NHS have its own tax? - BBC News
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