Is National Insurance good value for money?

[unbeliever]

The poor pay a bigger percentage of NI insurance from their wages as there is a celing- maximum.

So some of "they" pay a bigger percentage than you and some of "they" pay less.

Poorer people also pay a bigger percentage of their income on another tax -VAT.

 

Surely by the time the ceiling kicks in you're on the higher rates of income tax. So you're still paying more overall.

 

As I say, I'm all in favour of abolishing NI and increasing income tax to compensate. It's really just a slightly differently structured income tax anyway so I don't see the point of it. One would have to keep an eye on employers to make sure that they paid their employees the money they saved from their contributions, but apart from that it would be rather straightforward.

[*_ash_*]

Surely by the time the ceiling kicks in you're on the higher rates of income tax. So you're still paying more overall.

 

As I say, I'm all in favour of abolishing NI and increasing income tax to compensate. It's really just a slightly differently structured income tax anyway so I don't see the point of it. One would have to keep an eye on employers to make sure that they paid their employees the money they saved from their contributions, but apart from that it would be rather straightforward.

 

Well I gave one example earlier!

 

They can find a way of not paying out full state pension when the time comes.