But it has since been reported that the NI cut would apply only to those earning less than £50,270 – meaning a significant tax rise for millions of middle earners
Is there a current mechanism to only cut NI for people with below a certain total salary? That sounds like a change to how tax works: where everyone pays the same amount on a particular tranche... it's just that contribution rate goes up on higher tranches.
I'd assumed that the mechanism would be that NI on the basic rate would go from 8% to 6% to offset basic rate income tax going from 20% to 22%, whereas the higher rate income tax would go from 40% to 42% without being offset by removing higher rate NI.
But that we would all benefit from the reduction in NI for the basic rate tranche of our income.
I'm sure Labour will find other ways to squeeze that extra £750 from the 'broad-shouldered' - so even though I'm sure they'd love to exempt only the already-low- contributing 'working people' from tax on the same tranche of income... it seems silly to make employers pay for changes to payroll systems.
On thevother hand, people on mumsnet have previously come up with all sorts of barmy suggestions like different tax rates on the same income for 'worthy' professions, but surely, surely Labour aren't daft enough to do something like this? It completely (further) de-legitimises tax.