Tax and N.I. merger & pension

seven-day-weekend

kidmugsy wrote: »

My dear sir, is that any way to refer to out noble welfare state, envy of the world?

Made me :rotfl::rotfl::beer:

JezR

This has been looked at several times, and has hitherto been placed in the 'too difficult' pile, whatever party the Chancellor has come from.

As is the case with any change, even one that overall is revenue neutral, it is those who lose that will bitterly complain.

The surplus in the National Insurance Fund, which whatever some politicians seem to believe is separated from the general consolidated fund, tends to go up and down with the state of the economy, being much larger in boom times than recessions, caused by the combination of lesser NI receipts, and greater payment of contributory social security.

The highest surplus was in 2009, but it is now heading towards the point where the government will need to top it up from other revenue, probably in the next fiscal year. The government has not contributed to the NI fund since 1997. It has also been affected by the collapse in interest rates meaning less money from notional investments (The NI fund is in effect loaned to the government.)

molerat

A 60% increase in the amount of tax paid would certainly lose a lot of grey voters ! Bringing ALL benefits into the tax system would be a fairer method IMHO.