johnson-raises-prospect-of-multi-billion-pound-payroll-tax-cut

Johnson raises prospect of multi-billion pound payroll tax cut

LONDON (Reuters) – British Prime Minister Boris Johnson said on Wednesday he planned a multi-billion-pound tax cut if he wins an election on Dec. 12, by raising the amount of earnings exempt from social security payments.

FILE PHOTO: Conservative leader Boris Johnson speaks during a televised debate with Labour leader Jeremy Corbyn ahead of general election in London, Britain, November 19, 2019. Jonathan Hordle/ITV/Handout via REUTERS

The two main political parties are showcasing starkly different visions for the world’s fifth-largest economy ahead of the Dec. 12 election.

Johnson’s Conservatives are promising to deliver Brexit while Labour says it wants to be the most radical socialist government in British history.

Workers currently pay social security payments — known in Britain as National Insurance contributions (NICs) — on annual earnings over 8,632 pounds ($11,147), lower than the 12,000-pound threshold at which income tax becomes payable.

Earlier this year, Johnson said he wanted to bring the National Insurance threshold in line with income tax. On Wednesday he said that would be a key goal if his Conservative Party forms Britain’s next government.

Johnson told broadcasters he would raise the National Insurance to 9,500 pounds at the next budget and would then set out a timescale for further increases to 12,500 poun

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