Today is UK budget day. So far we think a 2p cut in National Insurance is in the cards. It has not gone down well with many people wanting it to go to keeping the country on its feet. Let’s see what he says
I am not an expert, but it seems that the most benefits of the cut in NI is for Higher Tax Band earners. Those on median wages get a cut but their overall tax burden is increasing so it is a take with one hand, give back with the other.
Generally I think it is interesting that Tories seem to be continuing to try this card trick where they seem to think that they can get the majority of the population to vote against their own interests by pretending that taxes are going down for everyone.
But then I probably shouldn't comment any further because I don't really understand British politics or economics.
But then I probably shouldn't comment any further because I don't really understand British politics or economics.
Are you a member of our government then?
They love to announce with big fanfare a "tax reduction" with NI, and ignore the overall tax burden. It is all smoke and mirrors to reduce the higher earners tax more, but get the lower earners to still vote for them.
Telling the turkeys that Christmas is all about presents and good will and so they should vote for it.
What they should have done was leave NI untouched, both this time and last, while raising the threshold at which people start to pay tax. But, hey, that wouldn't impress the "squeezed middle classers" whose votes they rely on; indeed, it might even help the poor, and we couldn't have that, could we!
And that's before we think of raising the tax levels for the highest earners, freezing the capital gains tax allowance and the inheritance tax threshold ...
The only good things about an NI cut are that it only goes to those who work, as opposed to rent seekers, and because NI is capped it doesn't benefit the highest earners proportionately as much as an income tax cut.
The only good things about an NI cut are that it only goes to those who work, as opposed to rent seekers, and because NI is capped it doesn't benefit the highest earners proportionately as much as an income tax cut.
Comments
Generally I think it is interesting that Tories seem to be continuing to try this card trick where they seem to think that they can get the majority of the population to vote against their own interests by pretending that taxes are going down for everyone.
But then I probably shouldn't comment any further because I don't really understand British politics or economics.
Are you a member of our government then?
They love to announce with big fanfare a "tax reduction" with NI, and ignore the overall tax burden. It is all smoke and mirrors to reduce the higher earners tax more, but get the lower earners to still vote for them.
Telling the turkeys that Christmas is all about presents and good will and so they should vote for it.
And that's before we think of raising the tax levels for the highest earners, freezing the capital gains tax allowance and the inheritance tax threshold ...
All true.
Removing the cap would be a very good idea.