UK tax policy

[John Short]

Following on from Simon and Kit in another subject on the IMF's input into modelling,

would the IMF make a distinction between National Insurance and Income Tax if they were to advise a UK Government

or

would they advise to get rid of National Insurance contributions totally and merge it with Income tax for individuals and with Company Tax on profits for companies and make the rates revenue neutral? 

[Martin Johnson]

Did I detect a post from Mr Short there, or was it from that famous former ODI Fellow Mr Vince Cable?

[John Short]

Did I hear a certain Mr Brown say last night in the Debate that NI contributions pay for education and the police?  Was that the official delinking of NI contribution to health and pension - if ever there was one in the past number of decades?

If not revenue neutral then fiscally neutral as in the original post to avoid a transparent stealth expenditure increase  (now there a phrase to give away my nationality) to health, local authorities and other big public sector employers.

[John Short]

Yes, Mr Brown confirmed last night on BBC that NI pays for police and education - he also added health.  He could have used the board to confirm and justify this change in policy with respect to NI.  I am surprised that Mr Cameron attacks the increase in the "jobs tax" next year that Mr Brown has promised, but still supports it, other than the planned increase.  Surely if it is a bad tax, he should attack it in its entirely?  But that would require consistency from politicians - not a common trait!

[petagny]

The Institute of Fiscal Studies have been doing some useful work this election.

Here's their analysis of the tax policy of the different parties:

http://www.ifs.org.uk/bns/bn100.pdf