More tinkering with the economy = Another missed opportunity
One simple measure could have been taken to reinforce the elements of cost control and economy – like actually raising the VAT rate to 20% (rather than just back to 17.5%).
Also, every chancellor has ducked the ongoing issue of pretending that National Insurance is not a tax. The bit paid by employees is a tax on wages. Employees cannot avoid NI – it is a tax on their pay.
The employers rate is a tax on jobs. Some realigning of the rates, and employees tax and NI could have been amalgamated, and the employers reduced – to encourage employment.
And, talking about simplification, what trigger is needed to change the tax year so it ends on 31st March instead of 5th April? (a historical incongruence). Collapse of the economy, failure of the banks, massive budget deficit – or an enlightened and pragmatic chancellor, perhaps.
Kevin Beare FCA
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Tags: Gordon Brown, Income tax allowances, Inheritance Tax, Kevin Beare, National Insurance Contributions, national minimum wage, tax credits, tax relief, UK Corporation Tax, UK VAT
