Earnings Tax is the first step to abolishing National Insurance
Reacting to reports that the Government is likely to back proposals to rename National Insurance to "Earnings Tax", Jonathan Isaby, Chief Executive of the TaxPayers' Alliance, said:
"Earnings Tax is a far more accurate description than National Insurance and Ben Gummer deserves huge credit for his campaigning. Renaming National Insurance will make it clear to taxpayers that it is a second Income Tax in all but name. In the long term it should be abolished entirely to make the tax system more transparent, remove a huge burden on employers and allow people to see how much the taxman really takes out of their pay packet each month."
In November 2011, the we published a comprehensive research paper that showed exactly How to abolish National Insurance. You can read the report here
The paper set out how to do so without pensioners and the self-employed losing out. It contains a detailed guide showing that pensioners, the self-employed and other groups will all receive a tax cut under our plans.
The first recommendation of the paper was “National Insurance should immediately be renamed to accurately describe its genuine function”.
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