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National Insurance IS Income Tax

Comment 5th July 2010


!  Generally the simpler a system the better it works and it will cost less to run.

2 Tax levels are intended to be set according to a peoples ability to pay.

3. Tax avoidance, usually working to the benefit of the richest membes of society, is legal and widespread.  


1. Merge Employee contribution Tax and NI.  This would increase tax collected as the upper earnings level on NI contributions would disappear. It would simplify Payroll Administration for most companies and avoid yearly software rewrites/updates.

2. Use any staff released by implemeting 1 above, on investigating Tax and Benefit issues. Give them a financial Incentive. No results equals low pay.

Why does this matter?

Instead of just making people redundant as a matter of policy, the most urgent thing to do is to look at what is being done and to ask the fundamental question "Is it really necessary and what does it contribute to the wellbeing of society?"

I have the feeling that public offices are bogged down with paperwork and Procedures. (Effectiveness is more important than efficency, although it is difficult to distinguish between the two sometimes.)

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