Median worker saves $250 with NI cut, Dan Neidle notes

Median worker saves $250 with NI cut, Dan Neidle notes
NI cut more valuable than allowance boost

Dan Neidle compares two tax policy options, stating that increasing the personal allowance by £500 would cost the government $5 billion and save a basic rate taxpayer only $100 per year. In contrast, a 1p cut in employee National Insurance would also cost $5 billion but save the median full-time worker $250 per year.

Neidle suggests that cutting employee NI is the stronger choice for those aiming to reward work.

Neidle has previously analyzed large-scale tax strategies, outlining the complexity of the Prosperity 2030 reform plan targeting £100 billion in annual revenue. In a separate discussion, he argued that the Palantir employee share scheme led to increased tax payments. These recent comparisons add to his record of detailed commentary on tax policy impacts.

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