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”.