Integrating Income Tax and National Insurance: an interim report
Income Tax and National Insurance are now sufficiently similar that merging them appears to be a plausible option, yet still sufficiently different that integration raises significant difficulties. This paper surveys the potential benefits of integration - increased transparency and reduced administrative and compliance costs - and the potential obstacles, assessing the extent to which each of the differences between Income Tax and NICs - in particular the contributory principle, the levying of an employer charge and the differences in tax base - constitute serious barriers to integration. The paper concludes that few of the difficulties look individually prohibitive, but that trying too hard to avoid significant reform of the current policy framework could produce a merged tax so complicated as to nullify much or all of the benefits of integration.
|Date of creation:||Dec 2007|
|Date of revision:|
|Contact details of provider:|| Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE|
Phone: (+44) 020 7291 4800
Fax: (+44) 020 7323 4780
Web page: http://www.ifs.org.uk
More information through EDIRC
|Order Information:|| Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrew Dilnot & Steven Webb, 1988. "Reforming National Insurance contributions," Fiscal Studies, Institute for Fiscal Studies, vol. 9(4), pages 1-24, August.
- Evan Davis & Andrew Dilnot, 1985. "The restructuring of National Insurance contributions in the 1985 budget," Fiscal Studies, Institute for Fiscal Studies, vol. 6(2), pages 51-60, May.
- Alan J. Auerbach, 2006.
"The Future of Capital Income Taxation,"
Institute for Fiscal Studies, vol. 27(4), pages 399-420, December.
- Auerbach, Alan J., 2006. "The Future of Capital Income Taxation," Berkeley Olin Program in Law & Economics, Working Paper Series qt90v90406, Berkeley Olin Program in Law & Economics.
- Robin Boadway & David Wildasin, 1994. "Taxation and savings: a survey," Fiscal Studies, Institute for Fiscal Studies, vol. 15(3), pages 19-63, August.
- David Skinner & Mark Robson, 1992. "National Insurance contributions: anomalies and reforms," Fiscal Studies, Institute for Fiscal Studies, vol. 13(3), pages 112-125, August.
- Elizabeth Symons & Ian Walker, 1986. "The reform of personal taxation: a brief analysis," Fiscal Studies, Institute for Fiscal Studies, vol. 7(2), pages 38-47, May.
- Judith Freedman & Emma Chamberlain, 1997. "Horizontal equity and the taxation of employed and self-employed workers," Fiscal Studies, Institute for Fiscal Studies, vol. 18(1), pages 87-118, February.
- Paul Johnson & Gary Stears, 1996. "Should the basic state pension be a contributory benefit?," Fiscal Studies, Institute for Fiscal Studies, vol. 17(1), pages 105-112, February.
- William Vickrey, 1939. "Averaging of Income for Income-Tax Purposes," Journal of Political Economy, University of Chicago Press, vol. 47, pages 379.
- Andrew Dilnot & Steven Webb, 1989. "Reforming National Insurance contributions: a progress report," Fiscal Studies, Institute for Fiscal Studies, vol. 10(2), pages 38-47, May.
When requesting a correction, please mention this item's handle: RePEc:ifs:ifsewp:07/21. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emma Hyman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.