This is really just to remind us all of it.
I say: businesses don’t pay taxes. People do.
Rather curiously on NI I agree with Worstall.
So, R. Murphy says that it is individuals, not companies, that pay national insurance.
So, marginal tax rates are not in fact 40% at the top end. They\’re 40% plus what is it, 12% employees\’ NI and 13% employers\’ NI?
Ah, no, the NI cap on employees\’ NI is about or below the top end tax bracket, isn\’t it?
Right, so top end marginal tax rates are thus 53% or so.
But wait! we\’ve also got the upcoming rise in the top tax rate to 50%.
And guess what else? Ritchie thinks that we ought to lift that employees\’ NI cap. Everyone should pay it on all their income above the minimal threshold.
So the tax system he\’d like to see is one of 50% plus 13% plus 12%. A top marginal tax rate of 75%?
Don\’t forget, Ritchie says that individuals pay NI.
Umm, anyone think we might be going over the Laffer Curve inflection point here?