23 Mar 2011

Budget speech latest: national insurance/tax merger oversold?

So the National Insurance merger with income tax was a touch over-written. It’s the first sign of madness to quote yourself but I did warn you not to get over-excited here…

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2 reader comments

  1. Saltaire Sam says:

    There was another throw away line that seemed to promise a lot but in fact came out as something that would have to be looked into (tory speak for shelved) and that was a tax on the value of land.

  2. Mudplugger says:

    There are lots of potential elephant-traps in merging Income Tax and NI, largely because they have both been used by all parties in the past as fog-factors for tax increases. Therefore, it is a brave government which sacrifices this smoke & mirrors deception trick on the altar of simplification.

    NI long ago lost all relevance to its original purpose, it is simply another form of tax on earnings, so why not call it that.

    I hope they manage it, then maybe they can move on to simplifying the nonsense that is VAT (Jaffa Cakes anyone ?), then eliminating most threshold Income Tax avoidance by implementing multiple micro-bands, so that each step of marginal increase does not justify any avoidance measures – OK, that would put lots of lawyers and accountants out of business but, as that’s all non-productive work, it’s no loss.

    Go for it George – it could be your only lasting legacy (in politics anyway).

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