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Social Progress Party
Politics to serve all of society, not just the wealthy and powerful.
SPP Proposed Solutions to the Problems with Income Tax and National Insurance Contributions
Our proposed IT & NICs reforms to address the three major areas that we outlined here.


We propose:
- combining Income Tax and NICs into one consolidated tax in order to simplify tax calculations, provide consistent logic and end the deception allowed for by the current system.
- to change the % rates and bands applied to different income levels to ensure a larger share of the tax burden is faced by those best able to support it.
- abolishing the tapering of the Personal Allowance that is currently applied from £100k-£125k incomes.
- that the incremental nature of the combined tax rate should continue far further than the current limit, as well as ultimately reaching a higher maximum rate, thereby ensuring that the link between increasing income and increasing tax continues for longer.
Specific new bands and rates would need to be reviewed when we have access to more data, but on an ILLUSTRATIVE basis only, the charts shows how our approach might look.
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