25 February 2014

A rose by any other name ...

CityAM reports:
THE CONSERVATIVE MP calling for an end to National Insurance payments has won the backing of business leaders at the Institute of Directors.
Backbench MP Ben Gummer will set out his argument to rename National Insurance the “Earnings Tax” in parliament today, and has admitted that this is the first step in a plan to remove NI altogether.
“If it’s a tax we should call it a tax,” Gummer said. “I want to see National Insurance and Income Tax merged, as they are essentially the same thing.”
They are not the same thing if you are a retired pensioner.  Pension payments attract income tax, but are exempt from NI contributions.


 

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