Raising Taxes

Really?

The GMB, which has given the party £1.4 million in the past year, wants the cap on National Insurance lifted so that higher-salaried workers pay more.

Depends how you look at it. But for those on something like 40k and above that would raise the income and NI tax rate to something like 49-50%….and if you treat employers\’ NI as coming from wages (which at least part of it does, and I tend towards the all of it end) more like 60%.

Which is a pretty high tax burden for the middle income types, don\’t you think?

There is another point to make of course: this is supposed to be national insurance, not income tax. Honoured more in the breach than anything else, but the implication is indeed that this pays for the old age pension, unemployment pay and the NHS. Implicit in such an insurance, as opposed to straight tax, system, is that those who pay in more get out more.

So, the GMB supporting a two tier health service? Higher state pensions for those who pay more in?

2 thoughts on “Raising Taxes”

  1. You do indeed get a higher S2P (née SERPS) for higher NI contributions. Except that they’ve just rigged the system by capping the S2P pension. Thieving bastards.

  2. MikeinAppalachia

    Then, once the cap is lifted, they can impose means testing on pensions. More in, less out.

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