Sajid Javid was interviewed about Universal Credit and National Insurance
Starting in April 2022 the National Insurance tax will increase by 1.25 percent. This tax hike will raise around PS12billion to finance Covid recovery and reform of the UK’s health care system.
Social media has seen a lot of public anger at Prime Minister David Cameron’s decision not to raise income taxes, but to add pensioners to the social care tax. This was after having paid National Insurance for a long time.
Women Against State Pension Inequality (WASPI) campaigner, Gina Headdon, tweeted: “Today’s pensioners have already contributed to previous generations’ pensions and paid taxes for years.”
Political figures have also claimed that increasing National Insurance would hit the most ordinary families hardest. Many of these families already struggle to meet their basic needs.
According to polls of 9379 respondents, Britons remain divided. They were polled from September 7, 2007 at 1pm to September 10, 2007.
Express.co.uk asked its readers whether they agreed with Johnson’s National Insurance increase plan. 49.8 percent answered yes, while 49.2 percent responded that they didn’t, and one percent weren’t sure.
Many people felt that it was unfair to blame the Government for failing to keep its tax promise. They couldn’t have predicted or seen Covid’s economic impact on the NHS.
One reader stated that tax increases were necessary, but Covid wasn’t in the Conservative manifesto.
Is Boris making the right decision with his tax increase?
Others, however, felt that the best way to fund the healthcare system was through raising National Insurance.
One voter said: “Should have taxed Facebook and Google instead.”
Another demand was: “Close all loopholes used by wealthy to avoid taxes, as well those used to report UK profits to avoid tax.
To avoid paying tax, “Stop persons can register as limited corporations.
Stop second homeowners from using their second home as a business for Council tax avoidance, and stop them from taking even more from the PAYE workers.
They hurled abuse at the Prime Minister and promised: “You’ll be out when the next election is after this Boris!”
Tax Justice UK discovered that the support for higher corporate tax rose from 61 per cent in March to 74% in June 2020. Additionally, 75 percent of Conservatives supported a mansion-tax on homes valued over PS2million.
There have been many calls for a Wealth Tax to replace a National Insurance increase.
Richard Burgon MP for East Leeds argued that if we imposed a 10% tax on wealth exceeding PS100m we could raise PS69billion.
“A wealth tax should be how we fund the much-needed investments in social care. It is not an increase in National Insurance Contributions that will impact those who are least well off.
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I am absolutely delighted that my National Insurance premiums are higher to help millionaires pensioners, who took my EU citizenship. It was just amazing.
Bruce Johnston (@Eoinel_).September 7, 2021
Some readers suggested that the foreign aid budgets be reduced to lower the 1.25 percent rise in National Insurance Tax on Britons.
One reader stated that tax increases were necessary to cover furlough. However, they should have begun by cutting excessive budgets such as foreign aid.
To free up funds for Covid recovery, the Government reduced its expenditures on foreign aid by approximately PS4billion, or 0.7 to 0.5 percent, of its gross national inflow.
Britain made a pledge to donate 0.7 percent of its income for aid in 1970. It joined 30 wealthy nations in an UN pact and, in 2015, the law was adopted by Britain.
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Campaigners claim that the UK is at high risk due to cuts in foreign aid. Many of the British government’s programmes are designed to reduce the spread of disease and to stop terrorist attacks.
According to the Government’s website, “Investing less that one percent of our national revenue in assistance is creating a safer and wealthier world.”
The UK spent PS14.5billion in aid for 2020. This was enough to meet the UN target of 0.7 percent. A large amount of funds were used on humanitarian assistance in countries like Pakistan, Ethiopia and Yemen.
Let us know your thoughts. Is the Prime Minister correct to increase National Insurance? Get involved in the debate in the comments section below.
Publited at Mon, 13 Sep 2021 10:00:00 +0000