Tax rises?

[Protagoras]

Every time, the elephant in the room causing tax distortions is NI. It really is time that government brought forward some proposals to retire this tax.

[willendure]

Every time, the elephant in the room causing tax distortions is NI. It really is time that government brought forward some proposals to retire this tax.

Once upon a time, NI made sense, when it literally was an insurance premium that paid out to the unfortunate few requiring support during unemployment or health care. But ever since it was just folded into the rest of taxation flowing to the exchequer, then yes, it really makes no sense.

I though that is why the primary threshold was changed to align with the income tax starting threshold? As a step towards getting rid of it.

But its the gift that goes on giving as far as chancellors are concerned so probably we are stuck with it.

[malvolio]

Once upon a time, NI made sense, when it literally was an insurance premium that paid out to the unfortunate few requiring support during unemployment or health care. But ever since it was just folded into the rest of taxation flowing to the exchequer, then yes, it really makes no sense.

I though that is why the primary threshold was changed to align with the income tax starting threshold? As a step towards getting rid of it.

But its the gift that goes on giving as far as chancellors are concerned so probably we are stuck with it.

It won't go away. Any party, least of all this one, wants to be accused of increasing the level of income tax, which is what merging NICs into Income Tax would mean to the man in the street.

Plus you would double the tax burden on everyone over the retirement age....