Labour's favourite stealth tax

[centurian]

I don't know which is worse: that politicians think that most people will fall for it, or that they are probably right.

Each week on Question Time, either a member of the audience, or a non-politician member of the panel says something like "the public don't want to be treated like idiots - tell us the truth", which usually garners raptuous applause.

The problem is that I think the public do want to be treated like idiots. They want to be told what they want to hear. That's why the "Labour investment vs Tory cuts" (and subsequent messages) has been so effective. Everyone knows it's utter claptrap, but they'll vote for it on the 0.001% chance that they might be correct, because thats better than voting for someone that is promising to make cuts.

"I want the truth" - "You can't handle the truth"
A Few Good Men
http://www.youtube.com/watch?v=5j2F4...eature=related

[DonkeyRhubarb]

I had assumed that most employers didn't ever put that element on the payslips, but I'd be happy to be corrected on that assumption.

The only payslips I've ever had with Employers NI on were when I was with an umbrella company a few years ago, and this was presumably so I could tally up the gross figure with what was invoiced.

My wife's most recent payslips didn't include this but I guess it may vary from company to company.

[TykeMerc]

Most pay slips to include employers NI. Most employees don't give a tulip if they are 'expensive' to hire.

Admittedly I've not had a non contractors payslip in almost 20 years, but I did help a friend sort out a question with their pay a couple of weeks ago and his payslips didn't mention the employers NI. I'm pretty certain of that.

I had assumed that most employers didn't ever put that element on the payslips, but I'd be happy to be corrected on that assumption.

[Platypus]

Also, employees don't see Employers NIC on their payslips, and probably assume it doesn't affect them.

Most pay slips to include employers NI. Most employees don't give a tulip if they are 'expensive' to hire.

[The Wikir Man]

If their lips are moving they're probably lying.

Read my lips - no new taxes.

Apart from the fact that George H.W. Bush wasn't talking out of his lips.

[HairyArsedBloke]

I don't know which is worse: that politicians think that most people will fall for it, or that they are probably right.

[TykeMerc]

I think this started under Maggie's rule. The Tories reduced the basic rate of income tax, but the rise in national insurance (presumably to pay for the extra 3 million unemployed) pretty much wiped out any savings. I also remember the Tories claiming they wouldn't double VAT... End of the day you have to remember you're dealing with politicians. If their lips are moving they're invariably lying.

FTFY...

Your memory is correct this particular piece of bait and switch taxation fiddling started with the Thatcher era and has been happily carried on ever since.
I find it very amusing that people are still taken in by the myth that NI is in some way not an income tax. It's a big fat revenue stream that most people ignore when income taxes are mentioned in the press.

[DonkeyRhubarb]

The reason is that the headline rate of tax (i.e. the standard rate) is the only one which seems to count politically nowadays.

Labour recognised this in 97 this which is why they were only too willing to promise not to increase it.

Also, employees don't see Employers NIC on their payslips, and probably assume it doesn't affect them.

[MrMark]

The reason is that the headline rate of tax (i.e. the standard rate) is the only one which seems to count politically nowadays.

I think this started under Maggie's rule. The Tories reduced the basic rate of income tax, but the rise in national insurance (presumably to pay for the extra 3 million unemployed) pretty much wiped out any savings. I also remember the Tories claiming they wouldn't double VAT... End of the day you have to remember you're dealing with politicians. If their lips are moving they're probably lying.

[Sysman]

The reason is that the headline rate of tax (i.e. the standard rate) is the only one which seems to count politically nowadays.

[DonkeyRhubarb]

http://news.bbc.co.uk/1/hi/uk_politics/8602988.stm

Calling it Labour's "favourite stealth tax", the Tories say they have calculated that the revenue the Treasury received from NI had risen by 22% in real terms since 2001-02 - five times the growth in income tax receipts over the same period.

Previously, I had only calculated it at 2x, but I hadn't taken into account inflation.

http://forums.contractoruk.com/gener...insurance.html