Pension tax raid being touted again

crv1963

Daniel54 said:

michaels said:

Daniel54 said:

bigadaj said:

It's a perfect example of a politically hypothecated tax. If it were a truly hypothecated tax it would be stricly ring fenced and the only option would be to increase or decrease the tax, or similarly vary the benefits. Governments treat it like a piggy bank and dip in and top up as they feel necessary,

The liquidity of the NIF is guaranteed by HMG ,so ultimately by tax receipts of whatever nature.
Faced with a lack of future liquidity ,successive governments have chosen to vary the benefit by increasing state pension age,rather than increasing the rates of national insurance.Just as you say.
I have pointed you towards the legal structure surrounding the payment and disbursement of NICs.These do not allow any Government to treat the NIF as a piggy bank to spend as they choose .Equally,if the NIF falls below mandated levels,Government is obligated to top up the fund from general taxation. 

So you are agreeing, the govt raises taxes or borrows to fund its spending commitments whatever name it happens to give to particular bits of tax or particular spending commitments.

Absolutely.Tax is tax

But my point is that  NICs,in their payment and disbursement  sit in a different legal environment to that of general taxation such as income tax, for example.

To take but one difference, NICs are payable weekly whereas income tax is payable annually.

There are understandable reasons why over the decades Chancellors have shied away from integrating these two different taxes.

A whole range of different taxes are derived from different things, some are due to the historic origin of the revenue and the enforcement of collection, it suits Chancellors to not combine the various taxes or simplify the system because in some cases they don't have the authority to do so, it is called HMRC precisely because the powers to take Custom rest with the Crown, not Parliament although of course the Crown defers to the Chancellor the rates set and does not directly receive the revenue unlike in former times. 
That is also a reason why when my car and I along with my passenger - a serving Police Officer were told in no uncertain terms on our arrival in Dover we will empty the car and if needed dismantle it to search for what we think you are transporting. Apparently 2 twenty somethings having a weeks holiday in Holland could not possibly be returning with no duty free! There was nothing to find and after the dogs had gone over it and they did in fact check his warrant card and my employer we were allowed to throw our emptied suitcases and clothes soaked by rain back into the car and go on our way!