AIBU to resent paying NI?

[jdoe8]

I don't hate taxes I know how important they are for society, I'd be quite happy to pay more IT to fund the NHS as it's hugely unfunded and in a mess. But that is another thing.

NI I now feel is a lie that MP keep up the facade with and like to keep kicking it down the road for someone else to deal with. Everyone paying NI now is unlikely to get a state pension as it increases and is quite possibly means tested away. This is likely to affect the younger generation the most.

I'd much rather NI and IT were rolled into one. My parents both retired and higher rate tax payers from their pensions and property, but yet in the current system they don't have to pay any NI. As a result of the poor NHS they have had to have several opps done privately. So they would benefit from paying more tax and having a NHS that is fit for purpose.

NI isn't just for pensions.

No government can risk combining Tax and NI because -

Simplifying the tax/NI system would mean too many jobs lost at HMRC - so the Civil Service will always find a way to prevent it.

But more importantly, people wouldn't accept the rates of income tax that would result.

I agree. I even have a detailed plan for how to go about abolishing it.

Since no-one will ask, the really clever bit is that employers NI gets renamed something like employer income tax contribution, i.e. it is a part-payment of your overall income tax bill by the employer, and is therefore a taxable benefit, i.e. your taxable income becomes + . (In the long-term the employer contribtution gets phased out, with more gradually being taken from the employee to replace it. This is done at a slower rate than salaries rise, so that employees don't really notice.)

Under my scheme employees in the basic rate band will have a marginal tax rate of nearly 40%. Those in higher rate just under 50%. Most people's take-home pay will hardly be any different than it is now, but they will be able to much more clearly see the fuck-load of tax that makes up the difference between what employers pay out and what they take home.