Submitted on Friday 10th March 2017
Rejected on Saturday 18th March 2017
Current status: Rejected
Rejection code: no-action (see below for details)
Abolish National Insurance (NI) and replace it with a rise in Income Tax.
The Chancellor has made changes to NI for the Self-Employed and the Prime Minister has defended these changes as "simpler, fairer and more progressive". However, NI is for all intents and purposes a second income tax. This is confusing, unfair and complicates the tax system for everyone.
The PM said "The decision on National Insurance was taken in the context of a rapidly changing labour market in which the number of people in self-employment - often doing the same work as people employed more traditionally - is rising rapidly." and added that this shift is "eroding the tax base".
NI was originally meant to fund welfare and state pensions. However, it is clear the proceeds are now used as a tax. It would be clearer and fairer for all citizens if it was merged into Income Tax
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The Government e-Petitions Team gave the following reason:
The Chancellor has announced (on 15 March) that the proposed changes to National Insurance for self-employed people won’t go ahead.
The Chancellor made a statement about this to the House of Commons. You can find out more, including how to watch the statement and read a transcript, here:
http://www.parliament.uk/business/news/2017/march/statement-on-class-4-national-insurance-contributions/
You can read a letter about this issue, which the Chancellor has sent to the Chairman of the Treasury Select Committee (Andrew Tyrie MP), here:
www.gov.uk/government/publications/letter-from-chancellor-to-chairman-of-treasury-select-committee-on-national-insurance-contributions-for-the-self-employed
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