I have now heard both sides of the argument
From a pure political point of view, the government should not do it, because you will hit both the young and the poorer the worst. People have long memories and if you tax them more now, they will never forget and will vote against the Conservatives as they get older
If the government want to raise taxes, they should do it by way of a wealth tax. Call it a fixed sum, if you earn over £150,000 per annum. One hit per year of say £15,000 to 20,000.
That would raise a substantial amount of money; I have no idea how much but that is the fairer way. Those in politics would think that the people who would be hit by this tax would change their vote but, in the grand scheme of things, it is peanuts to those who earn such large amounts of money.
And before anyone criticises me, I would be hit by this new tax too.
The ONLY alternative is to change income tax, for those who earn over £60,000, at a much lower rate of course.
People will initially “bulk” at this but would realise in time that this is a fair tax.
Let’s face it. Covid has hit every part of society and those with lower income have been hit the hardest. It is morally, politically and ethically wrong to increase the rate of NI, which will apply to all tax payers but not those who receive their income in the form of dividends. A change in the higher rates of income tax will cover all of those who can afford the increase in tax and not just those who could not afford it and would put them deeper in debt.
David's Diatribe 