Quote:
Originally Posted by jfman
So by any other measure it’s a pyramid scheme, with each generation hoping to squeeze the one after it by more than they paid out themselves.
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Except that it isn’t, because the NI fund has never been ring fenced, nor has welfare spending ever been isolated from the Treasury’s general tax take. Moreover, no government has ever claimed that was the case. NI was introduced in order to create a sense of ownership and fairness. Everyone paid in, everyone could take out. It was important, especially in the early days, to ensure the programme succeeded.
All taxation in a modern welfare state is inherently redistributive. Wealthy corporations and individuals pay in more, poorer individuals and economically deprived regions receive more.