LETTER: “Our current taxation is unfair for young people”
Phil Stone’s LAST Weekly Letter on National Insurance Increases to Pay More NHS and Social Care Costs was good (âIs NI Increase Fair ?, Postbag, September 23), but the current system is so out of balance.
Employees earning over Â£ 9,564 a year and up to Â£ 50,268 have to pay 12% of their income, then their employers contribute 13.8% more, only part of which is job related like sick pay .
Self-employed workers pay from a similar threshold a sum of Â£ 158 per year plus 9% of their income from profits.
When I was self-employed and reached retirement age at 65, I couldn’t believe my payments were stopping. Retirees therefore pay nothing.
READ MORE: LETTER: “Is the NI hike right?” No’
WANT TO WRITE? Click here to submit your letter
The purpose of national insurance is to pay the NHS, state benefits and pensions, but the retirement age dates back to the 1960s. At the time, most retirees did not have a pension. solid private pensions, gym memberships, motorhomes to tour Europe or did not have several houses to rent to young people in difficulty.
The three main political parties have been in power during this century and have continued to pay a very unfair share of insurance to young people who are most likely to have a job, facing high costs for housing and family education.
Young people need to take charge; they need to tell PAOs that they are using the National Health Service, that they are getting their vaccines first, and that they will likely need social care soon.
Covid 19 has now opened the door to retirees paying a larger share of their income above a similar income threshold, than the 1.5% health tax proposed for next year: on income at a time work and private pensions.