Sunday, 11 February 2018

Why The 1p NHS Tax Won't Work

When a countries economy starts to shrink they have two options to keep the coffers full, to raise tax to bring in more money or make cutbacks to reduce the amount they pay out and this Government have made the decision to make cuts, that they actually reduced tax for the top earners from 50% to 45% is an argument for another time, but on the whole it has been wide scale austerity and slashing the bills.
Amongst the many casualties has been the NHS who as a result of only receiving an annual increase of 1% instead of the traditional 4%, is in crisis.  
Out of the British pay packet comes Income Tax at either 20% for lower earners, 40% for higher earners or 45% for very high earners as well as National Insurance which is another 12% and is used to pay for your State Pension when you reach 67.
In all, on your wage each time you are paid and if you are in the lowest tax bracket (under £45,000) you pay to the Government almost a third of your wages but now the idea of an additional tax is being mulled over, a tax increase to pay for the NHS.
The first thought of many would be of course 1p more tax to pay for the National Health Service is a good idea but then thinking about it some more, it's an awful idea.
What about all the other essential services that have had their budgets slashed such as housing, education and police, they could make an excellent case for an extra 1p of tax for them also.
Any cuts and shortages of funding for our services was purely an ideological choice of this Government, they could have raised taxes or chased harder the £34 billion that is not collected through tax avoidance and tax evasion by the wealthy and corporations.
The Government has an average tax intake of £702 billion annually, how it spreads it around is a policy choice and by adding 1p to income tax will raise an additional £6 billion but unless it is ring-fenced and marked just for the NHS, it will just go into the countries bank account to be part of their regular income and who is to say that the treasury won't just reduce the NHS budget to take it into account.  
The taxation system is badly in need of an overhaul but regardless of the tax intake, the way it is divided out is down to the ruling Government and if they want to underfund the NHS, police or schools for their own ideological reasons, that will continue regardless.

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