>> on average, those pensioners who have enough income to pay tax have
>> larger incomes than the average working wage. So why exempt people like me from NI?
Averages may well not be a great way to analyse that. I take the view that they have netted it off the state pension, which as we know is one of the lowest around. I suspect though that it will come, initially at a low rate. Currently it is 12% for employees between about £10k-£50k p.a. so if a pensioner is on an average sort of gross income of £30k then they can potentially look forward to about £2.5k deduction for N.I., even though such contributions will presumably not accrue extra pension as they do for workers.
But NI is regressive once people are in the net. It drops for employees to 2% above £50kp.a. It also only applies to earned income. So really big earners, especially those whose income is substantially 'unearned', are barely touched by it.
It's time we got to grips with the large minority of comparatively very wealthy people. The Laffer curve doesn't mean that government shouldn't be looking or can't look at the enormous amounts of personal wealth hoarded by UK residents.
>> As Peter says merge them then we all pay. It would also address the fact
>> that there is a ceiling on NI so in percentage terms it falls heaviest on
>> the lower paid.
Quite
>>Meanwhile I, and millions like me, escape this tax raid (or necessary
>> fund raising) unscathed.
Not really. You will still have to pay up to £86,000 towards your care . I'd willingly pay my 12% if care support was free as it should be. If you get cancer, they don't tell you that you must pay for the treatment yourself, but if you get Alzheimer's they want your money or your house.
I think they will chip away at it anyway. Starting perhaps with a lower rate of NI on earned income.
TBH if I don't just fall off my perch as I expect, I'll do everything in my power to get live-in care. I'd be amazed if that can't be done for much less than £1500 a week especially if I provide the accommodation.
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Tax rise new
Tax rise new
