The National Insurance Lie: A Tax on Work not Wealth.

A manifesto is a roadmap for how a political party wants to run the country during the next parliament. It is their mandate to rule. However, we’ve seen it before and we’ve seen it again now, these promises, these manifesto pledges are not binding. They should be, they are what gives a governing party legitimacy, but having broken 3 of his manifesto pledges in one day, and inflicted more hardship on low paid workers rather than taxing the rich, Boris Johnson’s government should no longer be legitimate as they seek to tax work instead of wealth.

Is he going to call a General Election now that he’s shredded his mandate to run the country? Of course not, Boris Johnson has a massive majority and can do what he likes, however the question of breaking manifesto pledges is a big deal because it means he lied to the country in order to get elected. It’s not like Keir Starmer can exactly force the matter on that point either, given that he lied to the Labour Party to get elected leader himself, his 10 pledges have long been ditched and he’s done nothing but attack his own party, but he’s also failed to offer any alternatives and again that’s the case here, crowing that the Tories can no longer call themselves the low tax party, but failing to offer a plan of his own, not even to tax the wealthy, which, ironically, even the wealthy are calling for! It’s pathetic and the public will warm to him no more over this, than they have over anything else.

The attack on National Insurance is a vile one. The Tories promised it would not be raised and they’ve done it anyway. Work is the route out of poverty they’ve said for years, a lie as it was then, but now its even more dishonest, as they tax work instead of wealth. Johnson might well be blaming the pandemic for needing to do this, but when his plans will bring in and estimated £36bn, most of which is going to the NHS in actual fact, not social care, so it doesn’t even fix the social care crisis anyway, you can’t help but think hang on, Test and Trace cost £37bn – you didn’t put up any taxes to pay for that? and you’d be right, because taxation to pay for stuff is a myth when we as a sovereign country with our own currency can print however much cash we need for whatever we need it for. That is exactly how test and trace was paid for – numbers typed into a spreadsheet – magic! You start being charged national insurance before you even start paying income tax, meaning the lowest paid and often that means the youngest workers on the most rubbish of minimum wage are getting clobbered by this. These are people scraping by, many won’t even be able to do that, relying on foodbanks and working to earn their poverty and not working their way out of it as so many Tory mouthpieces have promised before. Now even more will be affected adversely. The money they spend goes straight into the economy as they spend what they get on food, on utilities, on essentials all the things which keep our economy going unlike the wealthy who just hoard their wealth, which does absolutely nothing to help the economy. By removing some of what little cash they have, it reduces their spending power and is harmful to the economy, this is why so many have said this national insurance rise will actually damage the economy – reducing spending power shrinks the economy, we have to spend for it to grow. Further compounding this will be the withdrawal of the £20 Universal Credit Uplift, Energy bills set to rise £139 a year, furlough ending combined with COVID spiking which we know will disrupt work, we’ve seen it before now so things are looking very scary indeed for those on the lowest incomes. National Insurance is also only paid on earnings and profits as well so anyone making money from annuities, investments, or property rental evades it completely, along with anybody on whatever wage still working past retirement age. Anyone earning over £50K only pays 2% national insurance instead of 12% as well! It is a wicked tax, unfair on so many levels that amounts to an assault on the poor and the young and this 1.25% hike makes it even worse.

It could’ve been so different, but the way to pay for this is to hit those with the broadest shoulders and when UK billionaires have added more than £100bn to their wealth in the last year, why can they not foot the bill? Many are calling for it! One third of what they’ve added to their wealth in the last year would raise what Johnson is projecting, it doesn’t even have to touch what they had before, so why can they not pay it? As it stands 2.5 million households look set to lose an average of £1,290 a year in the next tax year. All families that can most ill afford it. It is a depraved move by bottom feeding, money grabbing, big bucks worshipping maggots for whom greed is their God and the wealthy shielded from paying their share.

A 10% tax on the wealth of everyone who has more than £100m would raise £69bn – is that not fairer? It legitimately would fix social care as well as inject more cash into the NHS though it remains to be seen if it’s the NHS or private contractors running former NHS services who actually benefit. Why are the poor having to pay for the rich? Why is work being taxed instead of wealth? There is no other way of viewing this and the Tories are prepared to betray their voters, betray their mandate to rule to do it.

But it’s not even the only example of pledge breaking that day. By apparently having to do this to pay for social care, Johnson’s manifesto commitment to a plan for social care during the 2019 election campaign has been proven to be a lie.

If pensioners who wouldn’t be hit by the National Insurance clobbering thought they were protected, they’d be wrong as Johnson has decided to scrap the pensions triple lock for a year. Anyone really think it’ll ever be put back into place? Only right before the next election as a sweetener, you can bet on it, that or a promise to reinstate it, but why honestly would you trust a Tory manifesto ever again after this?

How about after you have to sell your house to pay for social care? Yes, even with all these cuts, all these shattered promises, you’ll still have to stump up up to £86K to pay towards your social care. The Tories promised nobody would have to sell their homes to pay for social care, but who has that kind of cash not locked up in their homes? £86K is a cap on costs and kicks in after the first £100K of a homes value, but when the remainder of the property value is divided up as an inheritance, a wealthy homeowner sat in a half million pound property is going to leave a damn sight more to their family than the owner of a house somewhere in the red wall who’ll leave scarcely anything behind at all. Again, it’s war on the poor, it’s a class war. Protect the wealthy, guard their wealth, hammer the poor, they either don’t vote for us or don’t vote at all anyway. The poorest people across the board are paying so the richest don’t have to. This is what happens when you elect an elitist fool without the faintest idea of what life is like for ordinary families, not that he’d give a damn if he did, he only thinks of himself after all. Johnson doesn’t give a damn that he’s broken so many promises and wrecked his mandate, he is a serial liar that couldn’t lie straight in bed and anyone believing a word he says is a fool. The question now is, are we going to just take it, or are we going to do something about it?

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National Insurance rise to pay for social care persecutes the youngest and poorest.

So Boris Johnson is proposing a National Insurance rise to pay for social care. Now as a Socialist I’m certainly not against higher taxation to cover necessary costs, things any of us may rely on in the future, but who is actually paying here and more importantly, who isn’t?

The Tories plan to raise National Insurance to pay for the increasing cost of social care according to numerous reports and to do so they’d be breaking not one but two manifesto commitments they made going into the 2019 General Election. Not only were National Insurance increases ruled out, but they clearly stated they had a plan for social care at the time, a plan Boris Johnson had refused to set out then, has refused to set out for 2 years now – the utter waste of oxygen stood on the steps of Downing Street after election and repeated the lie that he’d fix social care and probably pissed himself laughing after the door closed – and with this latest announcement it would seem that this social care plan really was a pack of lies from a career liar.

So they’ve broken a pledge or two, big deal you might think, I’m busy, I haven’t time to be worried about you and your leftish whinging because social care needs paying for after all and you’d be right, it does need paying however the fact the Tories will say stuff to get elected and then not mean it should be a concern to us all, that manifesto pledges are not binding is a big problem in the UK, because it betrays trust, wrecks faith in our electoral system, is acting in bad faith on the part of those doing it, and ends up promoting apathy amongst voters which is bad for democracy. But y’know, you’re busy! They’re busy too, rigging the system against you and there’s more coming down the road! But I’m not going to get into those particular issues here and now, the issue I’m going to focus on here is social care needs to be paid for and this is how the Tories are thinking of finally doing it, unless of course they don’t and just use the money for something else, that trust issue, it doesn’t just go away. Now many of you will be familiar with the fact that National Insurance Contributions show up on your payslip along with income tax and these are both deductions you pay anyway. Many of you might not begrudge paying a bit more and yes, I would agree with that, however the choice to charge more national insurance and not more income tax is a relevant one because of who it actually affects.

National Insurance is paid by businesses, the self-employed and employees who earn over £9,568 a year and it goes to pay for certain social security benefits like state pensions, statutory sick pay, maternity leave and gives you an entitlement to additional unemployment benefits should you need them, its supposedly an insurance policy against ill health and falling on hard times, hence the name, but it is basically just another tax. Now £9,568 a year is not a lot, you start paying National Insurance when you could be earning as little as £797 a month, a really low wage and that matters if you’re going to be asked to pay more of it to pay for Social Care, all while your energy bills are rising, your rent is rising, food prices are rising if you can actually find what you want these days and now they want to hit you with this too! They really do hate the poor. If you’re self employed it’s even worse, you start paying National Insurance on profits of just £6,515 a year – £540 a month! Now Income Tax on the other hand doesn’t start to be charged until you’re earning £12,570 a year, so you can see this National Insurance hike would be targeting the very poorest paid people in the country, hardly the sort of people you imagine that should be paying extra for social care in a fair society, they’re scraping just to get by and finding it harder by the day. Now because it goes to pay for your state pension, when you reach state pension age you stop paying it, however, that doesn’t necessarily mean you’ve retired – you may keep working, but you still stop paying National Insurance at age 66. So whereas the poorest paid and this typically is the youngest workers on the crappiest levels of minimum wage anyway, would face increasing national insurance costs to pay for social care, the oldest workers, those aged over 66, wouldn’t pay it at all and would not contribute whatsoever to the increased cost of social care and that’s true regardless of how much they earn. The other ridiculous thing about National Insurance is if you earn more than £827 a week, over £43,000 a year, the level of National Insurance drops from 12% of earnings to just 2%, so if you’re on a very nice wage above this level, are pretty well off all things considered, the less of a percentage of your earnings are taken through National Insurance. So far its looking like a bit of a scumbag move isn’t it! Well I’m not finished yet!

National Insurance is also only charged on earnings. If you rent property out, you don’t get charged it on the money you make, if you own a business and get an annuity from that, you don’t get charged for the money you make, if you’re rich and have lots of lovely investments bringing in more cash for you, you don’t get charged for the money you make. All in all, National Insurance itself, is actually a very unfair tax because of who it targets and how they are targeted.

Therefore, to raise this particular tax to pay for social care is a political move by utter bottom feeders, its seriously regressive as it compounds that inbuilt, inherent unfairness. It discriminates against the poorest paid, it discriminates against the youngest workers, it is an attack on the young because it is not a proportionate tax across all ages in society.

Raising the needed revenue with an increase on income tax would be far fairer across all demographics, all revenue streams, would be based on actual income and not discriminate against you based on age and earnings. It would be charged against older, better paid workers more rather than attacking the poorest paid and the youngest in work, but the point needs to be hammered home again and again that the most unfair aspect of our society when it comes to income and wealth is that the very wealthiest in society – the UK billionaires added £100bn to their wealth last year, more wealth than they could possibly spend in their lifetimes and that huge sum, let’s say it again, is in addition to what they already had. No matter what they spend therefore, they never even dent their capital. They can therefore afford to pay more than anyone else without any impact to their daily lives whatsoever and yet a wealth tax to address the rampant inequality in this country never gets addressed by this government. The playing field needs to be levelled, but with a government more intent on taxing the youngest and poorest workers into poverty and an opposition party leadership, incredulously still calling itself Labour, spending the entire weekend hand-wringing over whether to oppose this blatant attack on them – newsflash Starmer, you mug, its bloody obvious! What the hell took you so long? What chance is there of that?

Cornish Damo provides this site and its content free of charge, but in order to continue doing so, to continue to rant and write and tell it like it is, impartially, independently and free of outside influence, your donations are essential. If you can afford to do so without hardship, please consider supporting my work via one of the options on the support us page.

Thank you for your solidarity and for supporting alternative media holding power and the mainstream media to account.