Nov 2019
3:09pm, 20 Nov 2019
6,910 posts
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Too Much Water
Almost on a par with income tax, good for employers as well. I am sure this is an accident on purpose to take some sheen off the labour launch tomorrow |
Nov 2019
3:11pm, 20 Nov 2019
18,966 posts
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DeeGee
Oh yes, let's make doubly sure we look after those employers! For if it weren't for Mike Ashley's sweatshop (oh, the irony) we wouldn't have a High Street.
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Nov 2019
3:22pm, 20 Nov 2019
9,529 posts
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larkim
No guarantee this is for the employers rate, most likely just employees. Tax breaks benefit workers, not the most economically disadvantaged, and benefits houses with multiple workers more than single workers. It'll be spun as targetting the low income, but the benefit is potentially felt more in middle income households. TBH it's no great surprise - they always do it. |
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Nov 2019
3:30pm, 20 Nov 2019
18,967 posts
|
DeeGee
Benefits the higher earners over the rest of us, though, apparently. Another headline grabbing giveaway for Burlington Bertie. inews.co.uk |
Nov 2019
3:45pm, 20 Nov 2019
11,471 posts
|
Cerrertonia
National insurance is an odd one anyway. If you make £20k per year from working, your effective marginal tax rate is 32% - you keep 68p of each extra £1 you earn. If you make £20k per year from income from investments, you pay 20%. It seems oddly regressive that income from working is taxed so much more highly than income from bank interest, share dividends or whatever. It's also weirdly based on weekly earnings rather than annual. My wife has two part-time jobs. She doesn't earn anywhere near enough to pay income tax, but if she does 3 shifts in a week, she goes over the NI limit for that week and has some pay deducted even if she does no other shifts in the month. If she does 2 shifts each week for a whole month, she doesn't pay any NI, even though her pay is more than doubled. Also, the situation is more complex than workers = economically advantaged (I know this isn't what you said Larkim.) The richest group in the UK, both in terms of average income and in terms of average household net worth is those over the state pension age. |
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Nov 2019
3:50pm, 20 Nov 2019
9,531 posts
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larkim
I've long thought that it would make a lot of sense to simply rebadge NI as income tax, so that we can dispense with the myth that you "pay your stamp" etc, though I can see the benefit of having different tax streams having differential thresholds and requirements to a degree. It is an old and outmoded method of taxation certainly, and makes it a complex picture when comparing to other economies etc. Agree its more complex than workers = better off etc though. But others are much better capable of doing that analysis than me!! |
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Nov 2019
3:50pm, 20 Nov 2019
6,911 posts
|
Too Much Water
Yes National Insurance is never calculated on Cumulative earnings, whereas tax usually is. A rough calculation looking at the primary threshold (the employee element of NI) suggests £33.70 back in your pocket each month if you earn £12,000 per year. Currently the first £8,632 per year is free of NI. |
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Nov 2019
3:56pm, 20 Nov 2019
18,968 posts
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DeeGee
It's handy for any government to keep national Insurance as: a) it's nice and complicated, in terms of and individual working out how much they owe and pay; b) it comes second only to a "temporary refund adjustment" as a way of softening the blow of a tax hike. Say you're raising Income Tax, the masses spit chips, say you're raising NI, the masses believe that it's a penny in the pound for the NHS, so that's OK then... |
Nov 2019
4:22pm, 20 Nov 2019
27,149 posts
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macca 53
Parties tend to have their own red lines though don’t they? In Thatcher’s time it was unemployment level - this is why tens of thousands of miners were “advised” to take retirement on ill health grounds... For New Labour it was Income Tax - they promised never to increase primary level...... Both create problems for someone to clear up further down the line. |
Nov 2019
6:49pm, 20 Nov 2019
9,720 posts
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Joopsy
Sam Gyimah being utterly savaged by Eddie Mair right now.
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