Orders of the Day — National Insurance Contributions Bill — 17 Dec 2007 at 19:24
I beg to move, That the Bill be now read a Second time.
This short Bill has two purposes. First, it allows us to deliver the package of personal tax reforms announced in this year's Budget. By allowing the upper earnings limit to be aligned with the point at which higher rate tax starts to be paid, the Bill makes it possible to simplify the UK's tax and national insurance system significantly. From April 2009, there will be just two main rates of income tax. They will apply to the same bands of income as the two rates of national insurance contributions, thus creating one of the simplest personal tax structures of any developed country. Income tax will be just 20 per cent. for those earning less than £43,155 a year.
Question put, That the Bill be now read a Second time:-
The House divided: Ayes 291, Noes 161.
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