
Rachel Reeves only has ugly choices
Rachel Reeves should shift the tax burden away from workers and onto those who take most from the state: our pensioners. That’s the view of the influential Resolution Foundation. This morning they’ve recommended increasing income tax by 2 pence on the pound while cutting employee national insurance (NI) contributions by the same amount. Because no one (above the tax-free allowance) is immune from income tax, this would mean £6 billion is raised without an increase in the tax bill for those whose sole income comes from salaried employment. Pensioners who don’t pay NI would end up footing the bill. It’s a suggestion worth listening to because Torsten Bell, who used