The National Insurance tax increases could get WORSE as the Prime Minister pushes for a more severe increase.
Sajid Javid, the Health Secretary, is pressuring Boris Johnson to double the tax increase intended to pay for social care.
Next week, the Prime Minister is scheduled to reveal his ideas to revamp the social care system. To fund the reforms, Mr Johnson favors raising national insurance (NI).
To pay the cost of social care, the Conservative leader proposes a 1% increase in national insurance.
Mr Johnson, according to this website, was keen to publish his idea before Parliament adjourned for the summer, but was forced to postpone any decision due to ongoing disagreements between the Treasury and the Health Department.
It is said that conversations are still “live” just days before he is set to reveal his proposals, with no final decision on the amount the tax will hike by made.
Sajid Javid, the Health Secretary, is thought to have pushed for a 2% increase in the National Insurance rate.
The Times was told by two government sources. Mr Javid believes that the £10 billion raised by a 1% increase would be insufficient.
Mr Javid feels that the NHS’s backlog as a result of the epidemic necessitates additional investment not only for social care but also for health care.
A 2% increase would mean that someone earning £20,000 a year would be required to pay the taxman an extra £208 every year.
In the meantime, someone earning £40,0000 would be required to pay an additional £608 to Her Majesty’s Revenue and Customs.
Mr Johnson claimed he had a strategy to deal with social care while standing on the steps of Downing Street after winning the election.
Despite the fact that it has been almost two years, No10 has yet to outline the plans.
Any tax hike will be met with opposition after the Conservatives vowed in their 2019 manifesto not to raise the rates of income tax, VAT, or national insurance.
“We guarantee not to raise income tax, National Insurance, or VAT rates,” it declared.
“Not only do we want to freeze taxes, but we also want to lower them,” said another line.
“That’s what it says in the manifesto, I don’t see how we could increase national insurance,” Business Secretary Kwasi Kwarteng told Sky News in July when asked if there could be no increase in national insurance.
“However, you know how flexible things have been over the.”Brinkwire Summary News”.