Earnings Tax is the first step to abolishing National Insurance

February 24, 2014 9:23 AM

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 InsuranceYou 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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