There are ludicrous suggestions about that George Osborne might in time succeed David Cameron. But Osborne has absolutely no detectable personal warmth.
However, the suggestion of merging Income Tax and National Insurance is a cracking idea.
Let's show plainly on people's pay slips how much tax they are paying on their income. Having one highly visible combined rate of tax is absolutely the right thing to do, and it's also absolutely right that it has to be done now.
Labour will HATE it, so it HAS to be a good idea.
Next task: get Cable actually to start doing his job and cutting business red tape.
6 comments:
Agreed. Then let's merge VAT with all the other taxes by increasing the single income tax rate by another 7%. That'll remind people quite how much tax they really pay.
Don't forget we can now fire all the civil servants that administered National Insurance.
Result!
VAT will not be merged with anything, it is a tax on consumption.
You will be seeing VAT rise in years to come, and income taxation falling.
Merging national insurance with income tax means that all the pensioners (who do not pay NI at the moment, but do pay income taxes) will be paying more tax.
At the moment HMRC collects national insurance, so in the future it will be collected by.....errrrr.....HMRC ?
So we sack them ?
We already are...HMRC are being downsized year-on-year....some 50,000 less now than 5 years ago.
And people wonder why tax avoidance and evasion is rising ?
So we get rid of NI....how to attribute payments towards pension ?
Sorry, the devil is in the details, as always, and that looks likely to be a rise in taxation in the long term. Or maybe you thought that the lowering of the tax on fuel and the rising of the tax on fuel providers means lower prices ?
Even if you fire the civil servants their pensions will be still paid, and many are on contracts which will have to be paid.
And don't forget....5% of the 20% VAT goes direct to the EU...and NONE of the only parties that will be elected are going to do anything to get us out of it.
I think a read here may be advised:
http://www.dailyfinance.co.uk/2011/03/23/budget-average-family-400-worse-off/#continued
Means no difference to those who work cash in hand, or 16 hours at minimum wage, no N.I but maximum working tax credits. The self-employed have the luxury of declaring a low income to avoid incomet tax.
And don't forget that many of the "red-tape" regulations come from the EU...and "call-me-Dave" or "gorgeous George" cannot ignore, alter or amend them.
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