Transforming National Insurance

Source: Adam Smith Institute
by Madsen Pirie

"The now-withdrawn proposal to raise National Insurance rates for self-employed people from 9% to first 10% and then 11% has achieved one positive thing. It has drawn attention to the absurdity of the dual system of income tax and national insurance. Dan Hannan's piece in the International Business Times makes the point that the retention of National Insurance is done to conceal how much tax people are paying. He says people would be very angry if they knew that in addition to their basic rate of income tax at 20%, their National Insurance payments took it to a very much higher level. He is correct, but an honest government should let people know what tax they are paying, even if it changes their readiness to submit to tax increases." (03/15/17)

https://www.adamsmith.org/blog/transforming-national-insurance