Boris Johnson is expected to abandon the Conservative manifesto pledge not to raise income tax, VAT or National Insurance and has plans to raise the main rate of NI by 1pc or 1.25pc to ease the care crisis. Policy makers are reportedly at logger heads over the size of the rate increase, expected to hit some 30 million people.
National Insurance is charged at different rates on different bands of earnings. Self-employed workers are also treated differently.
The table below details how workers with various incomes would be affected. An employed worker earning £60,000 a year would pay £504 more a year in NI if the main rate increased from 12pc to 13pc, and the upper NI rate was raised from 2pc to 3pc. They would pay £630 more if it went up to 13.25pc and 3.25pc.
Higher earners will pay much more over their lifetimes. But I rather doubt that they’ll be offered higher thread count sheets, or Nescafe Gold instead of regular.
So what will these people, who are alreaday likely to have saved to pay for their own care anyway, get for their extra payments?
The idea that this will be spent on ‘The Care Crisis’ and not just spunked away with the rest of the tax-take is an utter joke. Surely nobody is fooled by this any more…?
Increase VAT. That way everyone will contribute, not just ‘the workers’.
Increasingly, what they’ll be getting is a one-way ticket out of the UK.
If they keep loading stuff like this on National “Insurance”, change it so it is an actual insurance scheme not a working-age income tax.
Notice how a rise from 12 to 13 percent is being sold as “a 1% rise”.
Well, they’re not “Conservatives” in any meaningful sense, so nothing really to stop them going the whole hog and taxing the earners to pay for the shirkers just like Labour did when in power.
I mean, is anybody surprised?
Employer’s NI will of course be increasing by a commensurate amount.
I have the misfortune to work through an umbrella company on an IR35 contract, so can expect to be doubly fucked.
God, I hate this government.
Given the answer to this conundrum has dragged on for years, multiple parliaments, I assume there’s no easy answer – certainly one that will resonate with voters. It’s being sold by many as a tax that benefits the old at the expense of younger workers. But 90pct of those younger workers already owe me big time for their university education, not least because so many of them will never settle their debt. What has never been broken down is the categories of beneficiaries of so-called social care. Old folks aside, a significant amount of the budget goes to supporting those born severely disabled – individuals that were once smothered at birth. How does this break down as a percentage?
Boris Johnson is expected to abandon the Conservative manifesto pledge not to raise income tax, VAT or National Insurance
Whether its wise to raise any of those specific taxes or not I suspect that most people will understand that that pledge was taken without the knowledge that the economy was going to be effectively shut down for a year or so.
And whether or not the government shut it down people were making changes to their lifestyles during the first wave and to a lesser extent during the 2nd wave you can see it in the data before the government took action. The government just made it worse.
Ah, so HS2 has yet another cost overrun.
None of the claims of new taxes for NHS,Care, etc, have any credibility so long as Blowjob is still pissing £150bn away on an unnecessary and useless train set.
“individuals that were once smothered at birth”: aye, and in an era that was, at least ostensibly, far more Christian.
That’s not entirely contradictory if the smotherers believed that the smotherees were going to “a better place,” eternal life etc. Presumably a hasty Christening was carried out beforehand.
“Notice how a rise from 12 to 13 percent is being sold as “a 1% rise”.”
COVID DEATHS SOAR BY 8.3%!!!!
A lifetime cap will come a bit late for those families like my own where the parents capital has been decreased by £750k to date for care home fees while the state is picking up the tab for other residents in the same home (whose offspring show up on visiting days in £80k+ cars). Our mistake was in not persuading Ma and Pa to gift their assets away before signing the LPA.
Sorry, I got that fake headline wrong. To make it really scary it is of course
COVID DEATHS SOAR BY 8.333% !!!