Income Tax & National Insurance cost to be merged

[Mermaid]

Another way to increase the overall tax burden.

http://www.independent.co.uk/money/tax/osbornes-se...

[rover 623gsi]

good idea

[davepoth]

Yep, it removes a whole level of complexity from the tax system, since NI doesn't in any way cover the things it's supposed to fund.

[RYH64E]

Mermaid said:

Another way to increase the overall tax burden.

http://www.independent.co.uk/money/tax/osbornes-se...

I think that by making the total tax take more visible the effect would be to reduce the overall tax burden in time.

[anonymous-user]

+1 to good idea.

Hopefully a promise to not raise tax doesn't just move it to NI which is a tax by any other name.

Hopefully a way to cut admin costs for Gov't & Business as well iinstead of duplicating.

[Stevenj214]

Mermaid said:

Another way to increase the overall tax burden.

Did you actually read the story?

[sinizter]

Will it really happen?

What will be the consequences ? Some hidden increase somewhere ?

It is a complete PITA having 2 lots of taxes by whatever name. But I would have the two lots and pay less rather than have one lot and pay more.

[Mermaid]

NI has been irrelevant for decades. It was just a convenient way to fool the people on the rate of income tax.

[JagLover]

rover 623gsi said:

good idea

Agreed

With a universal state pension joining with the existing changes already made by Labour to SERPS there won't really be any contribition (or insurance to call it another term) based payments left.

Reduce complexity and also reduce opportunities to increase taxes by stealth.

[Parrot of Doom]

Good. I'm sick of paying income tax, and then getting the occasional demand for NI contributions. Lump it all into one pot.

[NoelWatson]

I thought this was being discussed a week ago - not really news

http://www.guardian.co.uk/money/2011/mar/10/nation...

[Jasandjules]

Simplification of the tax system is a good thing is it not?

[davepoth]

Jasandjules said:

Simplification of the tax system is a good thing is it not?

The problem with it is that it's calculated on a different basis to income tax, so as always, there will be winners and losers.

[Eric Mc]

I would love to see NI abolished and Income Tax increased to replace it. It would be much more honest and transparent and remove a whole heap of incomprehemsible bureauorcracy from the system.

[thatone1967]

maybe get rid of vehicle excise and a couple of pence to price fuel while we are at it?

[Frankeh]

Why can't we have a damn flat tax. It makes so much sodding sense.
Stop hiding taxes and show the people how much you're really taking from them. I'd imagine it's around the 50% mark at the moment for most people.

I'd rather have a flat tax of 50% and pay 50p a litre for fuel, and 80p for 2 pints of milk.

[Mermaid]

thatone1967 said:

maybe get rid of vehicle excise and a couple of pence to price fuel while we are at it?

So foreign motorists/lorry drivers also pay for the upkeep of our roads.

[rs1952]

davepoth said:

Jasandjules said:

Simplification of the tax system is a good thing is it not?

The problem with it is that it's calculated on a different basis to income tax, so as always, there will be winners and losers.

It starts to get complicated with people like pensioners - you don't pay NI on any earnings after you pass the retirement age, and you don't pay NI on any pension income, but they are both sources of taxable income.

These matters could of course be dealt with by adjusting tax codes.

[Mermaid]

Frankeh said:

Why can't we have a damn flat tax. It makes so much sodding sense.
Stop hiding taxes and show the people how much you're really taking from them. I'd imagine it's around the 50% mark at the moment for most people.

I'd rather have a flat tax of 50% and pay 50p a litre for fuel, and 80p for 2 pints of milk.

All retired people/ non tax payers will vote for this one.;)

[Eric Mc]

Frankeh said:

Why can't we have a damn flat tax. It makes so much sodding sense.
Stop hiding taxes and show the people how much you're really taking from them. I'd imagine it's around the 50% mark at the moment for most people.

I'd rather have a flat tax of 50% and pay 50p a litre for fuel, and 80p for 2 pints of milk.

The problem with a flat simnple tax system is that the ability to avoid it could be very easy.

Tax isn't complicated purely because of tax rates. Tax is complicated because of underlying rules and regulations,. A flat rate tax could end up with even more complicated anti-avoidance rules than we have now.