Public Favour Merger of Income Tax and NI
Research by PwC suggests that a merger of income tax and national insurance would get widespread public support. The research was carried out with the help of a representative group of 22 members of the public.
Following the research, PwC have set a number of recommendations for reform of the UK’s tax system before government. Integration of national insurance and income tax found major support in the group’s two-day-long deliberation process as a way to simplify tax.
Other suggestions included a process of simplification for VAT. It was suggested that essentials might be VAT-free, and everything else applied a flat rate of 20%. It was also suggested that inheritance tax could be abolished. In its place, it was suggested that new council tax bands and higher levels of stamp duty for larger, high-value properties could make up the loss of income for the public purse.