The UK's tax take, take, take

Helping her country ski ever more steeply down the wrong side of the Laffer curve, Rachel Reeves may be preparing to violate Labour’s manifesto and raise income tax – perhaps a suitable juncture at which to examine just how wacko the UK tax code is already.

Start with the duplicity of ‘national insurance’. This unhypothecated add-on simply pours into the Treasury’s coffers as plain taxes. Yet much of the populace still believes that NI specifically funds the NHS. This is misunderstanding by design. The sly mislabelling is a resentment blocker. In truth, the employee basic tax rate is a straight-up 28 per cent, not 20 as advertised. The mooted Reeves proposal of raising income tax by 2 per cent and reducing basic-rate NI by 2 per cent is dishonest. She might as well transparently raise tax