UK Needs New Health Tax

February 10, 2017 Taxation in UK

Taxes to fund the NHSLONDON – The UK health system needs its own dedicated tax to ensure that it has an independent and reliable source of funding in the future.

In a new article published on February 8th in the medical journal, the British Medical Journal, the researcher Richard Layard suggested that a new tax on personal incomes be enacted in the UK, with the revenues being ringfenced exclusively for use in the national medical system.

It was proposed that the new tax be levied on top of existing taxes and levies, although some tax cuts could be enacted to the personal income tax system to compensate for the rise.

The exact rate for the tax should be set to cover the total of the expenses of the medical system.

The rate could be varied based on the needs of the medical system, and taxpayers’ satisfaction with services, and their willingness to pay out more of their incomes.

As the entirety of the revenues from the new tax would be dedicated to health spending there would be little to no pressure for the government to cut spending on healthcare in order to meets its own budgetary requirements.

Under the present system, all taxes, including National Insurance Contributions are collected as a general revenue total, with payments to various social services allocated separately from the total.