The Government has indicated that it plans to rename National Insurance contributions as ‘Earnings Tax’ in a move to bring some honesty into the tax system. This is great news for which the TaxPayers’ Alliance has long campaigned. And Ben Gummer MP deserves much credit for his campaigning for the change, too.
Although it’s just a name, it’s important. National Insurance is not insurance, it’s a tax. When it was introduced it had many insurance features but these have long since disappeared, making the name ‘National Insurance’ both dishonest and misleading. It would be a lot simpler if we just called it what it is, as our video demonstrates:
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”.
Welsh Councils are in the process of setting their budgets and many are proposing big hikes in Council Tax of up to 5 per cent. Swansea has already approved a 5 per cent increase. This is the same Swansea council that recently limited the amount of bin bags households can leave out for already heavily curtailed fortnightly bin collections. Continue Reading
Click the video above to watch our film celebrating ten years of the TaxPayers’ Alliance.
On a rainy day at Balliol College, one of Oxford University’s oldest and most prestigious colleges, students gathered in its subterranean bar to support our Cut Cider Tax campaign. They collected dozens of signatures for our petition calling on a cut in the Cider Duty Escalator, which automatically adds duty of 2% above inflation to a pint of cider. The ghost of former postgraduate student Adam Smith must have nodded approvingly.
‘With pubs closing across the country,’ says Oxford student Jack Matthews, ‘the Government needs to do all it can to help this important industry. Cutting the cider tax would be a great show of support to our hardworking publicans.’
After the signature collecting, students celebrated a successful action day with a few pints of Thatchers cider at favourite student pub the King’s Arms in the heart of Oxford. For those wanting to taste a locally brewed cider, they should try Thorn Brook cider produced by the Little Orchard Company on the Oxfordshire/Warwickshire border, north of Banbury. Very nice!
Please sign our online petition here: