Brooks Newmark Is a Tory MP and even more embarrassingly a supporter of Newcastle United. And he is terribly excited that the Sun Newspaper is backing his “big idea” to cut employers NI contributions when a firm takes on someone under 25. Oh please. Brooks try to think this through logically. I know you are an MP but can you try?
You appear to accept that employers NI is a tax on jobs. That is a really good start. Albeit, not facing much competition, that marks you out as one of our smarter MPs.
But if you accept that principle why are you not campaigning to abolish NI altogether for all workers? What you propose will be a pain to administer. And is likely to merely see more 25 year olds offered jobs …at the expense of 26 year olds. From a party committed ( supposedly) to simplifying tax this is all very odd.
Might I suggest a rather more radical approach. Abolish NI altogether.
Employees NI is not a hypothecated tax so let’s just be honest with the electorate and merge it with income tax.
Employers NI is a tax on jobs. Scrap it altogether and you will at once reclaim almost a fifth of the cost through increased Corporation tax receipts. More importantly by cutting the cost of employing a person by one ninth you will encouarge companies to recruit more staff.
That means fewer welfare payments and more PAYE tax receipts. And of course by simplifying the tax system ( scrapping NI altogether) the Government can fire a stack of taxmen so reducing its deficit.
Since we are agreed on the proposition that employers NI is a tax on jobs, what is to oppose in my proposal of creating a simpler, more transparent, cheaper to administer fiscal system which will assist the private sector in creating jobs and wealth?