Biggest tax cut in a decade?
11 Jul 2022
I am not a Government spokesperson (thankfully) but I increasingly have to take issue with the Media – and some of the public -confusing inappropriate behaviour with results. Many on the left keep referring to higher taxes which is true in terms of the rate charged (to fund the NHS), but less so in absolute terms. Boris Johnson says the increased National Insurance threshold will hand 30m people the “biggest tax cut in a decade,” describing the move as “an important moment in our mission to ease the burden on households.” The Prime Minister noted that workers will save up to £330 a year when the point at which people start paying National Insurance rises from £9,880 to £12,570. Seven in ten workers will pay less NI, even after accounting for the 1.25% Health and Social Care Levy, with 2.2m people lifted out of paying any NI or income tax at all. Mr Johnson has vowed that there will be "more tax cuts in the future". Of course the focus on scandals is down to those that engage in scandalous behaviour, but let us not allow aberrant behaviour to distract us from financial reality. Nor should we blame Government for what is hasn't caused, although we can apportion blame for what hasn't been cured.
As to this repetition about “higher taxes”, former Health Secretary Jeremy Hunt says people should prepare to pay more in tax to fund the NHS. Mr Hunt, who chairs the Commons Health and Social Care Select Committee, told the Institute for Government think-tank that Americans will spend more through private insurance premiums, those in Germany and the Netherlands will spend more through social insurance premiums, while “if you're in Britain, Ireland or New Zealand you're going to spend more through your taxes.”
so You cannot fund more expense with less income, so while fairer taxation should always be an objective, wingers without credible solutions should move to Scotland where economic reality does not apply.