Economics class: Who are the winners and losers from the UK’s £12bn social care tax raid?
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Fiscal policy, labour markets, market failure
Click to read the article below and then answer the questions:
Who are the winners and losers from the UK’s £12bn social care tax raid?
Outline the changes which will be applied to National Insurance Contributions (NICs), the so-called Health and Social Care Levy, from April 2022.
As a result of the changes to NICs, how much NICs will employees pay if their income is:
a. Less than £9,568;
b. Between £9,658 and £50,270; and
c. Greater than £50,270.
Explain how freezing personal allowances from 2022 will also increase the government’s tax take — https://www-ft-com.ezp-prod1.hul.harvard.edu/content/2f485d0b-ee4d-4b20-9e4c-ad3ed52ffec4
Using a labour market diagram(s), analyse the potential unintended consequences of the ‘two tax hikes.’
Gavin Clarke, Emmanuel College
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