Sep 7, 2021

National Insurance rise could hit economy, business groups warn

Plans to raise National Insurance to pay for social care costs in England have come under fire from business groups. National Insurance is paid by both businesses and staff. "Nobody likes taxes, but the government's already said it's going to raise corporation tax, which is a tax that companies pay out of profit so if you're doing well, it gets paid."The problem with National Insurance is that it's a kind of flat cost, so it's it's paid regardless of whether firms are having a good year, or a bad year. "There is no logic to employer National Insurance Contributions being used to fund anything else." The plan has prompted a backlash from some Tory MPs.Labour has also criticised the move, saying a rise in National Insurance would unfairly target young people and lower earners.

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