Boris Johnson proposes a Worstall policy:
Increasing the starting point for national insurance contributions to £12,500
Cost: £11bn. At present people pay NICs when they earn £166 a week and income tax when they earn £12,500 a year. Johnson wants to gradually align the two systems by raising the NICs ceiling to an annual £12,500. Doing this in one go would cost £11bn a year and take 2.4 million people out of paying NICs altogether, but would still offer most benefits to those on higher earnings.
Huzzah and Gloria etc.
And how do I know it’s a Worstall policy? Because of the £12,500. That’s what the full year, full time, minimum wage was when I made the proposal. Which was my proposal – income tax and NIC should be aligned with the full year, full time, minimum wage.
Sure, inflation and minimum wage changes have moved the number on, but the policy is still living in that old form.