Shocker – the national insurance increase will affect poor people the worst
Families already on the breadline could collapse due to the increase in national insurance, says HMRC.
The government announced on Tuesday that national insurance would rise by 1.25 percentage points to combat the crumbling NHS and help fund social care.
Analysis prepared for the Government by HMRC was released publicly after the announcement. The report stated that the impact would be ‘significant’ on earnings, inflation, and company profits.
HMRC also stated: ‘There may be an impact on family formation, stability or breakdown as individuals, who are currently just about managing financially, will see their disposable income reduce.’
Despite the advice from HMRC, Boris Johnson believes the tax reform is ‘Progressive’, and ministers have said it’s the fairest way to fund the necessary changes.
But the HMRC report states that the change would disproportionally affect those whose primary income comes from their job and not property income, pension income, or savings.
Though Conservative officials are pretty unified in their motion, members of the opposition and the general public are also crunching the numbers in a bid to show alternative routes.
Labour deputy leader Angela Rayner called the tax hike a “slap in the face” to key workers.
Labour deputy leader Angela Rayner describes the increase in National Insurance and cut to Universal Credit as a "slap in the face" to key workers#KayBurley
Read more: https://t.co/goFsCp5AQS pic.twitter.com/En4DcZKct4— Sky News (@SkyNews) September 13, 2021
Former Labour leader Jeremy Corbyn has been vocal on the issue on social media. “There should be a Wealth Tax on the super-rich – those with assets over £5m,” he tweeted.
I support @richardburgon 's amendment to scrap the Tory National Insurance hikes.
Instead, there should be a Wealth Tax on the super-rich – those with assets over £5m.
This could fund much-needed investment in our social services, including a National Care Service for all.
— Jeremy Corbyn (@jeremycorbyn) September 8, 2021
Political commentator and Guardian journalist Owen Jones proposed numerous avenues on Jeremy Vine.
“15 per cent tax charge on investment income of the wealthiest, seven-billion pounds a year,” he said.
Here’s the thing. I’m an independent journalist who says what I think, and spend most of my time taking on the Tories, like this.
It’s my honest opinion that the Labour leadership is badly failing to take the Tories on.
That doesn’t make me a “red Tory”pic.twitter.com/7md52rgoMD https://t.co/rWEDCjkfKN
— Owen Jones (@OwenJones84) September 10, 2021
“Another one, capital gains tax, if you bring that up to the same level as income tax, that would bring in about nine-billion pounds.”
Related links
- Covid cases in England are 26 times higher than this time last year
- People could face £255 tax rise as PM set to unveil overhaul of social care sector
- ‘I faked a Covid test to cheat my way into a nightclub’
