Johnson’s Tax Hike May Cement U.K. Generational Inequality (1)

Sept. 7, 2021, 3:51 PM

Prime Minister Boris Johnson’s plan to fund the National Health Service and social care uses a tax that has long attracted criticism for perpetuating generational inequalities in the U.K.

The 12 billion-pound ($17 billion) annual tax hike to help fund health care comes almost entirely from a 1.25% increase in National Insurance -- a tax paid on workers’ salaries.

That means that people with income from other sources, such as landlords or pensioners, will pay no extra tax. And since those people are often older and wealthier, Johnson’s policy is likely to dump more of the extra costs of ...

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