I have long been concerned about the regressive nature of the UK tax system; regression that is in part caused by the wholly unfair way in which our social security charges work.
National insurance is charged on earnings up to £34,840 this year (and £40,040) next with a small exemption (£87 a week this year). Any tax at 11% (in the main) that stops (bar 1%) when a bit above average earnings is reached is obviously regressive.
But Richard, National Insurance isn\’t a tax, is it? It\’s payment into a social insurance policy.
If you want to change that, to move to a system whereby the social insurance is indeed funded by taxation, then you have to remove all of the eligibility limits thatwe currently have on the benefits you can receive from the social insurance policy.